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Land
Trust
A land trust is an agreement whereby one party (the
trustee) agrees to hold ownership of a piece of real
property for the benefit of another party (the beneficiary).
Land trusts are used by nonprofit organizations to hold
conservation easements, by corporations and investment
groups to compile large tracts of land, and by individuals
to keep their real estate ownership private, avoid probate
and provide several other benefits.
Mortgage
A mortgage is “an interest in land created by
a written instrument providing security for the payment
of a debt. A mortgage can be defined as either a conveyance
of title to property that is given as security for the
payment of a debt as it is defined in title theory states,
or as a lien against property that is granted to secure
a debt and that is extinguished upon payment according
to the stipulated terms, as it is defined in lien theory
states, such as Florida. The definition and the effect
of a mortgage depend on whether the State is a title
theory or a lien theory state.
Note
A written instrument acknowledging a debt and promising
payment.
Quiet
Title Action
Legal action brought to eliminate any interest or claim
in a property by others. It is the procedure used to
remove title defects from a real estate title when a
Quitclaim Deed cannot be obtained.
Refinancing
Refinancing refers to the replacement of an existing
debt obligation with a debt obligation bearing different
terms. Refinancing may be undertaken to reduce interest
rate/interest costs (by refinancing at a lower rate),
to extend the repayment time, to pay off other debt(s),
to reduce one's periodic payment obligations (sometimes
by taking a longer-term loan), to reduce or alter risk
(such as by refinancing from a variable-rate to a fixed-rate
loan), and/or to raise cash for investment, consumption,
or the payment of a dividend.
Reverse
mortgage
A type of mortgage where homeowners can borrow money
against the value of their home. No repayment of the
mortgage (principal or interest) is required of the
borrower(s) until the borrowers are deceased or the
home is sold. After accounting for the initial mortgage
amount, the rate at which interest accrues, the length
of the loan and rate of home price appreciation, the
transaction is structured so that the loan amount will
not exceed the value of the home over the life of the
loan.
Often, the lender will require that there can be no
other liens against the home. Any existing liens must
be paid-off through the proceeds of the reverse mortgage.
1031
Exchange
A 1031 Exchange, also known as a Like Kind Exchange,
is a way of structuring a sale of certain kinds of property
so that the seller’s profit or gain is not currently
taxed. Instead, the property that is sold is replaced
with another “like kind” property. If the
transaction is properly structured, the seller’s
profit or gain is deferred to a future date.
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