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Anglia Ruskin University, Cambridge and Chelmsford Real Estate Discussion

Anglia Ruskin University, Cambridge and Chelmsford Real Estate Discussion

Description

Please respond to Cynthia with 200 words

Cynthia

October 3, 2022

BRE-110

Walt & Huber

Chapter # 11 & 12

Overview

The topic in Chapter 11 is about Escrow and Closing. It talks about how the closing process in California is slightly different than other states and how escrow closes about 2 days after loan funding in California. In Chapter 12 the topic is about Real Estate Financing, and it covers the mortgage loan process, mortgage default, and Truth in lending disclosure.

Key Concept from Chapter 11

The first concept I learned is about the Real Estate Settlement Procedures Act (RESPA). The RESPA is a federal law that was passed by Congress in 1974 and it requires lenders to disclose information about closing costs to loan applicants. The RESPA applies to most federally related loans (p. 403).

Key Concept from Chapter 12

The second thing I learned is that a Subordinating Trust Deed is a later-filed trust deed that is given a higher priority (p. 438). Subordination is most common when a seller carries back a trust deed for part of the purchase price (p. 438). Also, a subordination clause can be included in the earlier trust deed, or a separate subordination agreement may be drawn up (p. 438).

Key Concept from Chapter 11

The last thing I learned is about the requirements for a valid escrow. The requirements are an enforceable contract, relinquishment of control of documents and funds, a valid deed, escrow agent, and escrow instructions with conditions. A legally binding contract must create an escrow designating an escrow holder and giving him/her escrow instructions (p. 395). The enforceable contract is fulfilled by a purchase agreement.

Summary

These two chapters had more informative information on escrow and closing as well as real estate and financing. I also learned in a real estate loan transaction; the promissory note should state that it is secured. Another interesting thing is security agreement is made between a lender and a borrower and create a security interest in property pledged and hypothecated.