Establishing Proper Authority in Business Transactions-Ch2

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A collateral assignment is only used in commercial transactions, while an assignment can be used in both residential and commercial.

A collateral assignment involves transferring the mortgage to a third party, while an assignment retains ownership within the same party.

A collateral assignment involves pledging the right to collect under a mortgage as security, not transferring the mortgage itself. (correct)

A collateral assignment transfers all rights and ownership of the mortgage, while an assignment only transfers partial rights.

To shift the responsibility of property disclosure from the seller to the buyer.

To speed up the closing process and ensure efficiency in real estate deals.

To protect the buyer from acquiring property with undisclosed issues or liabilities. (correct)

To minimize legal fees associated with drafting detailed affidavits for sellers.

When the property has undergone significant construction changes.

When there are multiple ownership disputes concerning the property.

When there are undisclosed liens or judgments on the property.

When there are only easements on the plat. (correct)

A collateral assignment involves pledging the right to collect under the mortgage, not the mortgage itself. Signup and view all the answers

To ensure buyers have accurate and reliable information about the property. Signup and view all the answers

To establish who has authority within the LLC Signup and view all the answers

To certify key details about the LLC and its members/managers Signup and view all the answers

To avoid future authorization issues Signup and view all the answers

To ensure the buyer has recourse under the affidavit. Signup and view all the answers

It requires additional parties to sign off on satisfaction. Signup and view all the answers

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