Chapter 12 Vocab

Question 1

AITD

Answer 1

• All inclusive trust Deed

- Same as a wraparound mortgage

Question 2

Assumption

Answer 2

-When the buyer becomes primarily responsible for the sellers loan

Question 3

Beneficiary

Answer 3

-The person entitled to the payment on a loan

Question 4

Consideration

Answer 4

• usually a sum of money

- Same as OPTION MONEY

Question 5

Contract escrow

Answer 5

-buyer makes payments to escrow account then the escrow agent pays the seller

Question 6

Mortgagor

Answer 6

-One who makes the payment

Question 7

Land contract

Answer 7

-Seller retains legal title to the property until the buyer has made all payments

Question 8

Option money

Answer 8

-Amount paid by the Optionee to the Optionor

Question 9

Optionor

Answer 9

A person who gives an Option

Question 10

Participation Loan

Answer 10

AKA - Shared appreciation loan

Question 11

Option

Answer 11

the right to purchase the property during a specific time

Question 12

Wraparound mortgage

Answer 12

Type of mortgage where part if the payments are used to retire an existing mortgage

Question 13

Subject to

Answer 13

when the buyer takes over the sellers old loan