Questions and Answers
What type of payments do most first and second trust deeds require?
What is a potential issue a seller may face when taking a note and trust deed?
Who typically buys trust deeds?
What is the most common starting point for the sale of a note and trust deed?
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What identifies the process when a deed of trust is in default?
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Which of the following involves a personal property interest in real property?
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Who typically sells trust deeds?
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What is the start of the sale process for a note and trust deed?
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What should a 'request for notice' notify a person about?
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What condition is almost never true for the price of a note and trust deed?
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Study Notes
Trust Deeds and Notes
- Most trust deeds typically require monthly payments, catering to buyer affordability and structured repayment.
- Accepting a note and trust deed can pose risks for sellers, including potential future cash needs or property return requirements.
- Trust deeds represent a personal property interest in real estate, distinguishing them from other types like grant or quit claim deeds.
Market Participants
- Trust deeds are mainly purchased by third parties, including investors or financial institutions seeking returns.
- Lenders are the common sellers of trust deeds, leveraging their position in financing arrangements.
Escrow Process
- The initiation of a note and trust deed sale occurs through escrow instructions, outlining the terms and responsibilities in the transaction.
- Pricing for a note and trust deed often does not fall below the existing balance due, ensuring sellers receive fair compensation.
Title Insurance
- Queries regarding title insurance, including costs and coverage, are most efficiently addressed by title insurance officers, who specialize in this area.
Default Procedures
- The default process for a deed of trust includes multiple steps: the occurrence of default, a request for trustee action to sell, and the filing of a notice of default.
- A "request for notice" serves as an alert system concerning defaults, allowing interested parties to be informed of potential issues.
Trust Deeds and Notes
- Most trust deeds typically require monthly payments, catering to buyer affordability and structured repayment.
- Accepting a note and trust deed can pose risks for sellers, including potential future cash needs or property return requirements.
- Trust deeds represent a personal property interest in real estate, distinguishing them from other types like grant or quit claim deeds.
Market Participants
- Trust deeds are mainly purchased by third parties, including investors or financial institutions seeking returns.
- Lenders are the common sellers of trust deeds, leveraging their position in financing arrangements.
Escrow Process
- The initiation of a note and trust deed sale occurs through escrow instructions, outlining the terms and responsibilities in the transaction.
- Pricing for a note and trust deed often does not fall below the existing balance due, ensuring sellers receive fair compensation.
Title Insurance
- Queries regarding title insurance, including costs and coverage, are most efficiently addressed by title insurance officers, who specialize in this area.
Default Procedures
- The default process for a deed of trust includes multiple steps: the occurrence of default, a request for trustee action to sell, and the filing of a notice of default.
- A "request for notice" serves as an alert system concerning defaults, allowing interested parties to be informed of potential issues.
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Description
Test your knowledge on trust deeds and financing in real estate with this activity quiz. Questions cover essential aspects like payment types, seller risks, and types of deeds. It's a perfect way to reinforce your understanding of property interests.
