AYPO Real Estate Finance Exam
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Terms in this set (312)
Real estate has one-half of the world's total
been estimated economic wealth.
to represent
approximately
,The buyer's primary
ability to
finance the
property is an
important, if not
the -------,
contingency in
most residential
transactions,
and a significant
driver in the
entire real
estate-based
economy.
Texas is a: a. Lien Theory
a. Lien Theory
b. Title Theory
, In lien theory states such as Texas,
the security for a mortgage is a lien
placed on the property, which is
removed once the loan is fully
repaid. The title (or other legal
instrument documenting the rights
and privileges of the holder of the
title) is actually held by the
Lien Theory
buyer/property owner. This makes
foreclosure more challenging than
when the lender (as in a title theory
state) or a third party (as in a deed
of trust) hold actual title. In all of
these cases, the buyer/property
owner holds equitable title to the
property.
, In title theory states, the mortgage
is secured by the lender holding
legal title to the property until the
mortgage is paid off. Again, the
borrower holds "equitable" title to
the property which carries many,
but not all, of the rights granted by
the actual title. The full title is given
Title Theory to the borrower when the loan
obligation has been fully satisfied.
Because the lender has the full
title, foreclosure on the property is
easier than if the mortgage was
only secured by a lien, because
the title does not need to be
recovered from the defaulting
buyer.
While the loan is the money a
lender provides to buy the home,
the mortgage and deed of trust
Mortgages
are the "instruments" that
document the lender's actual
interest in the property.
2025 (Actual Exam) | All Questions
and Correct Answers | Already
Graded A+ | Verified Answers |
Latest Version
Save
Terms in this set (312)
Real estate has one-half of the world's total
been estimated economic wealth.
to represent
approximately
,The buyer's primary
ability to
finance the
property is an
important, if not
the -------,
contingency in
most residential
transactions,
and a significant
driver in the
entire real
estate-based
economy.
Texas is a: a. Lien Theory
a. Lien Theory
b. Title Theory
, In lien theory states such as Texas,
the security for a mortgage is a lien
placed on the property, which is
removed once the loan is fully
repaid. The title (or other legal
instrument documenting the rights
and privileges of the holder of the
title) is actually held by the
Lien Theory
buyer/property owner. This makes
foreclosure more challenging than
when the lender (as in a title theory
state) or a third party (as in a deed
of trust) hold actual title. In all of
these cases, the buyer/property
owner holds equitable title to the
property.
, In title theory states, the mortgage
is secured by the lender holding
legal title to the property until the
mortgage is paid off. Again, the
borrower holds "equitable" title to
the property which carries many,
but not all, of the rights granted by
the actual title. The full title is given
Title Theory to the borrower when the loan
obligation has been fully satisfied.
Because the lender has the full
title, foreclosure on the property is
easier than if the mortgage was
only secured by a lien, because
the title does not need to be
recovered from the defaulting
buyer.
While the loan is the money a
lender provides to buy the home,
the mortgage and deed of trust
Mortgages
are the "instruments" that
document the lender's actual
interest in the property.
