What is a promissory note?

A promissory note is a document evidencing a debt owed, typically signed before receiving a loan, outlining the loan terms.

What does a mortgage signify?

A mortgage is a document creating a lien on property, indicating money owed and the potential for property seizure if not paid.

The due on sales clause requires the loan to be paid off before the property is sold, ensuring the lender is repaid.

The mortgagor (borrower) pledges property, while the mortgagee (lender) receives the pledge, with the property as collateral.

The O-R-E-E rule denotes actions and recipients in real estate terms, aiding in understanding complex real estate concepts.

A promissory note is essentially an IOU, serving as evidence of a debt owed with detailed loan terms.
Mortgages create liens on properties, indicating money owed and the risk of property seizure if not paid, with distinctions between voluntary and involuntary liens, and the due on sales clause requiring loan payoff before property sale.

What is a promissory note?
A promissory note is a document evidencing a debt owed, typically signed before receiving a loan, outlining the loan terms.
What does a mortgage signify?
A mortgage is a document creating a lien on property, indicating money owed and the potential for property seizure if not paid.
What is the due on sales clause?
The due on sales clause requires the loan to be paid off before the property is sold, ensuring the lender is repaid.
Who are the parties in a mortgage?
The mortgagor (borrower) pledges property, while the mortgagee (lender) receives the pledge, with the property as collateral.
What is the O-R-E-E rule in real estate?
The O-R-E-E rule denotes actions and recipients in real estate terms, aiding in understanding complex real estate concepts.

00:00

Joe and Amber are reviewing concepts related to trustees, mortgages, and promissory notes before Amber takes a test.
They start with the definition of a promissory note, emphasizing simplicity and understanding it as an IOU.
A promissory note is the evidence of a debt owed, typically signed before receiving a loan, detailing the terms of the loan.
Joe uses a simple example of writing an IOU on a napkin to explain the concept further.
Moving on to mortgages, Joe clarifies that a mortgage is not a loan but a document creating a lien on the property, indicating money owed and the possibility of property seizure if not paid.
The mortgage creates a lien on the property, indicating that the property is pledged to the lending institution.
They discuss the difference between voluntary and involuntary liens, with mortgages falling under voluntary specific liens.
Joe explains the concept of taking property subject to a lien, meaning the buyer assumes responsibility for the debt on the property.
The discussion leads to the due on sales clause, where the loan must be paid off before the property is sold.
Finally, they address the parties involved in a mortgage, distinguishing between the mortgagor (borrower) and mortgagee (lender), with the property serving as collateral for the loan.

16:56

Promissory note is an IOU, mortgage is a pledge.
A suffix is added to the end of a word to condition its usage or meaning.
The O-R-E-E rule applies to denote actions and recipients in real estate terms.
Mortgagor pledges property, becoming the mortgageor; the lender receives the pledge, becoming the mortgagee.
Trustee relationships involve trustor, trustee, and beneficiary, with legal and equitable titles defined.
Contract for deed simplifies to seller lending to the buyer, with legal and equitable titles assigned accordingly.
Understanding concepts over memorizing words aids in comprehending real estate terms.
Fiduciary duty in agency relationships means putting the client's interests first.
General and special agency relationships differ in their scope and responsibilities.

36:00

General agency involves doing multiple tasks for a client, while special agency focuses on a specific task.
An example of special agency is finding an able and willing buyer.
A listing contract is an example of a special agency relationship with the seller.
A general agent is authorized to perform various acts associated with the ongoing operation of a job or business.
Implied agency occurs through actions, orally or in writing, where one acts as an agent without a formal agreement.
An implied contract is similar to implied agency, where actions dictate contractual obligations without a formal agreement.
The four essential elements of value are demand, utility, scarcity, and transferability.
Depreciation refers to the loss of value on a property, which can occur through functional obsolescence, economic obsolescence, or physical deterioration.