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Questions and Answers
What is the purpose of a subordination clause in a mortgage?
What is the purpose of a subordination clause in a mortgage?
- To terminate an existing mortgage
- To give one lender priority over another lender in lien position (correct)
- To allow the borrower to change mortgage terms
- To allow for a higher interest rate on a new mortgage
What does the Statute of Frauds require?
What does the Statute of Frauds require?
- Verbal agreements are sufficient for all real estate transactions
- Every contract must be filed with the court
- All leases must be notarized
- Certain contracts must be in writing to be enforceable (correct)
Which of the following is NOT an obligation an agent owes their client?
Which of the following is NOT an obligation an agent owes their client?
- Performing their duties diligently
- Being disloyal to the client's interests (correct)
- Being accountable to the client
- Providing notice to their client
What is one way a lease can be terminated?
What is one way a lease can be terminated?
In Georgia, which theory of property ownership does the state follow?
In Georgia, which theory of property ownership does the state follow?
What must a lender do in a non-judicial foreclosure state to proceed with foreclosure?
What must a lender do in a non-judicial foreclosure state to proceed with foreclosure?
What does 'meeting of the minds' refer to in contract law?
What does 'meeting of the minds' refer to in contract law?
For a contract to be legally binding, which of the following must be true?
For a contract to be legally binding, which of the following must be true?
Flashcards
Subordination Clause (Mortgage)
Subordination Clause (Mortgage)
A clause in a mortgage that establishes a lender's priority in case of a property sale.
Statute of Frauds
Statute of Frauds
Legal principle requiring certain contracts, like property sales, to be written to be enforceable.
Agent's Obligations
Agent's Obligations
An agent's duties to their client, including obedience, loyalty, disclosure, and due care.
Lease Termination
Lease Termination
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Non-Judicial Foreclosure
Non-Judicial Foreclosure
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Meeting of the Minds
Meeting of the Minds
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Loan Amount Calculation
Loan Amount Calculation
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Competent Parties
Competent Parties
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Study Notes
Real Estate Questions
- Subordination Clause (in a mortgage): A clause that allows a lender to give another lender higher priority in lien position due to an increase in property value.
- Statute of Frauds: Real estate contracts must be in writing to be legally enforceable. Leases for one year or less are an exception.
- Agent's Obligations to Client: An agent owes their client performance, obedience, loyalty, accountability, and notice.
- Lease Termination: A lease can be terminated by merger (landlord selling to tenant).
- Lien Theory/Title Theory State: Georgia is a title theory state and a non-judicial foreclosure state.
- Non-Judicial Foreclosure: In a non-judicial foreclosure state, lenders must advertise in a county newspaper for four consecutive weeks, then foreclose the first Tuesday of the following month.
- Mutual Assent: Another name for the meeting of the minds in a contract.
- Valid Contract Requirements: A contract must be executed by competent parties, have consideration, mutual assent, and a legal purpose.
- Calculating Loan Amount: When given a purchase price, loan-to-value, and payment amount per thousand dollars, calculate the loan amount by multiplying the purchase price by the loan to value, then dividing the total by 1000, then multiplying this result by the payment amount per $1000.
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