Instruments of Real Estate Finance Chapter 7 Instruments of Real Estate Finance

7-1 Learning Objectives Explain the basic characteristics of real estate financial instruments List and define the basic provisions of a promissory note List and define the basic provisions of a trust deed

Promissory Notes Outlines the borrowers promise to pay 7-2 Promissory Notes Outlines the borrowers promise to pay Accompanies the mortgage or deed of trust Recourse or nonrecourse notes Deficiency judgement

Provisions of Promissory Notes 7-3 Provisions of Promissory Notes Amount, Consideration, and Payer Interest and Payment Assignment Provision Prepayment Default and Acceleration Escrow Accounts Due-on-Sale Clause

Provisions of Deed of Trust or Trust Deeds 7-4 Provisions of Deed of Trust or Trust Deeds Assignment of Rents Waste Successors and Assigns Reconveyance Release Clause Owner Occupancy Award from Eminent Domain Covenants and Restrictions