CLAUSES REAL ESTATE VA Flashcards

CLAUSES REAL ESTATE VA Flashcards A due on sale clause/alienation clause contract puts parties

on notice that:

any conveyance/transfer may trigger an increase of any loans The Exculpatory Clause in a Promissory Note, the lender

may or may not:

may NOT seek a deficiency judgment against the maker in the event (there's a foreclosure) What clause would prevent a mortgage from being assumed by a subsequent buyer?A Due on Sale Clause/ Alienation Clause This offer is based on the assumption that the buyer can obtain a loan of a certain amount at a certain rate. What clause?Loan Contingency Clause

A Contingency clause in a Sales Contract is if unmet:Marks it unenforceable

Defeasance clause:authorizes cancellation of mortgage once a borrower has

paid off the loan A developer got a loan for construction on a 20 lot property to build new houses. What clause would he request to unencumber the lots as the loan amount is paid off?Partial Release Clause

Acceleration clause:specifies that if the borrower doesn't pay the loan the

entirebalance of the loan is due The Loan Contingency Clause will contain what in a valid sales contract?Amount of loan, Date of commitment, and the Interest Rate of a loan

Loan Contingency Clause:Allows buyers to cancel a contract without penalty and

mayget a refund of earnest money A son and daughter in law just went through bankruptcy.They want to buy their parents house and assume their mortgage. What clause would prevent this sale from taking place?Alienation clause An exculpatory clause in a mortgage contract, the lender

releases the borrower from:

PERSONAL LIABILITY