2. Unit 10: Instruments of Real
Estate Finance
Promissory Note
Typical Clauses Found in a Fixed-Rate Note
Date & Property Description
Parties to the Contract
1. Borrower’s Promise to Pay
2. Interest
3. Payments
4. Borrower’s Right to Prepay
5. Loan Charges
3. Unit 10: Instruments of Real
Estate Finance
Promissory Note
Typical Clauses Found in a Fixed-Rate Note
6. Borrower’s Failure to Pay as Required
1. Late Charges
2. Acceleration Clause
7. Giving of Notices
8. Joint and Several Liability
9. Waivers
10. Reference to Security
Signatures of the Borrowers
4. Unit 10: Instruments of Real
Estate Finance
Promissory Note
Fixed-Rate Balloon Notes
Clauses Found in Adjustable-Rate Notes
Payments
Interest Rate and Monthly Payment Changes
5. Unit 10: Instruments of Real
Estate Finance
Negotiability of a Promissory Note
Protections for a Holder in Due Course
Types of Promissory Notes
6. Unit 10: Instruments of Real
Estate Finance
Uniform Security Instruments
Fannie Mae/Freddie Mac Uniform Security
Instruments
Standard Terms Used in Uniform Security Instruments
Parties to the Security Instrument
Note
Loan
Riders
Covenant of Seisin
7. Unit 10: Instruments of Real
Estate Finance
Uniform Security Instruments
Uniform Covenants
Periodic Payments
Charges and Liens
Property Insurance
Occupancy
Preservation and Maintenance of the Property
Lender’s Right to Protect its Interest in the Property
Mortgage Insurance
8. Unit 10: Instruments of Real
Estate Finance
Uniform Security Instruments
Uniform Covenants
Joint and Several Liability
Borrower’s Copy
Transfer of the Property
Borrower’s Right to Reinstate
Sale of Note
Change of Loan Servicer
Hazardous Substances
Non-Uniform Covenants
9. Unit 10: Instruments of Real
Estate Finance
Mortgages and Deeds of Trust
Deed of Trust
Parties
Title
Reconveyance
Remedy for Default
Statutory Redemption
Deficiency Judgment
Statute of Limitations
10. Unit 10: Instruments of Real
Estate Finance
Mortgages and Deeds of Trust
Mortgage
Parties
Title
Satisfaction
Remedy for Default
Statutory Redemption
Deficiency Judgment
Statute of Limitations