Maricopa Community Colleges  REA291   19886-20086 
Official Course Description: MCCCD Approval: 07/22/08
REA291 19886-20086 LEC 3 Credit(s) 3 Period(s)
Legal Aspects of Real Estate Financing
Methods and procedures of financing real estate acquisitions, rights of the respective parties; application and affixation of liens, encumbrances and restrictions on real estate.
Prerequisites: REA281.
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MCCCD Official Course Competencies:
 
REA291   19886-20086 Legal Aspects of Real Estate Financing
1. Describe the elements, principles and practices involved with real estate financing. (I)
2. Describe various forms and documents used in the financing of real estate. (II)
3. Describe current practices in financing residential real estate. (III)
4. Describe the government programs available in the financing of residential real estate. (IV)
5. Describe the methods and current practices in financing commercial real estate. (V)
6. Use terminology dealing with the financing and documentation of real estate transactions. (VI)
7. Describe the basic contents and provisions of real estate contracts and their application to real estate transactions. (VII)
8. Describe mechanics and procedures used in closing of real estate transactions, including the use of escrows. (VII)
9. Describe the application and impact of taxes to real estate. (VIII)
10. Describe the legal proceedings applicable to real estate. (IX)
11. Describe the concepts of special real estate transactions. (X)
12. Describe the priciples and procedures of foreclosing real estate mortgages and deeds of trust. (XI)
13. Describe the principles and application of mechanics liens as these liens affect real estate. (XII)
14. Describe the use, creation and termination of easements affecting realestate. (XIII)
15. Describe the concept and application of party walls, the use and easement created by them. (XIII)
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MCCCD Official Course Outline:
 
REA291   19886-20086 Legal Aspects of Real Estate Financing
    I. Encumbrances
        A. In General - Mortgages and Liens
        B. Real Estate Financing
        C. Promissary Notes
        D. Mortgage and Deeds of Trust
        E. Land Contracts
        F. Residential vs Commercial
        G. Practices
      II. Financing Devices
          A. First Deed of Trust
          B. Secondary Deed of Trust
          C. Purchase Money Deed of Trust
          D. Wrap Around Mortgage
          E. Land Contracts
          F. Equity Participation
          G. Lease with Option
          H. Sale and Leaseback
          I. Ground Leases
          J. Other Creative Financing
        III. Residential Financing
            A. Contract
            B. Convential Loan
            C. FHA Loan
            D. VA Loan
            E. Other Government Assured Loan
            F. Private Loan
            G. Secondary Loan
            H. Partnership/Equity Loan
            I. Purchase Money Mortgage
          IV. Government Programs
              A. FHA
              B. VA
              C. FNMA
              D. GNMA
              E. FMLMC
              F. Government Insured
              G. Private Insurance
            V. Commercial Financing
                A. Land Acquisition
                B. Construction
                C. Permanent
                D. Assignment of Rents
                E. 99 Year Lease
                F. Lease With Option
                G. Sale and Leaseback
              VI. Special Finance Terms
                  A. Fixed Rate & Term
                  B. Graduate and Step-Up Mortgage
                  C. Net Rates
                  D. Blended Rate
                  E. Rollover Mortgage
                  F. Usury
                  G. Acceleration/Due-On-Sale
                  H. Refinance/Renegotiate
                VII. Contracts, Closing & Escrows
                    A. Contracts
                    B. Contract Documents
                    C. Escrow Instructions
                    D. Escrow Prorations
                    E. Escrow Procedures
                    F. FRETCSA (F)
                    G. Truth in Lending - Z (F)
                    H. Local Practices
                  VIII. Taxes
                      A. Taxes and Assessments
                      B. Tax Liens
                      C. Tax Aspects of Real Estate
                    IX. Litigation and Laws
                        A. Lis Pendens
                        B. Declaratory Judgements
                        C. Judicial Foreclosure
                        D. Judgements and Executions
                        E. Bankruptcy
                        F. Executory Contracts in Bankruptcy
                      X. Special Aspects
                          A. Condominium Concept
                          B. Property Owner Association Liens
                          C. Enforcement of Liens
                          D. Landlord and Tenant
                          E. Land Trust
                        XI. Foreclosures and Redemptions
                            A. Encumbrance Contents
                            B. Judicial Foreclosure
                            C. Trustee Sale
                            D. Arizona Deeds of Trust
                            E. Foreclosure of Deeds of Trust
                            F. Termination of Land Contracts
                            G. Redemptions in Arizona
                            H. Deficiency Judgements
                          XII. Mechanics Liens
                              A. Mechanics Liens -In General
                              B. Mechanics Liens Enforcement
                              C. Mechanics Lien Perfection
                              D. Mechanics Lien in Arizona
                              E. Mechanics Lien and Tenant
                              F. Releases and Preventions
                            XIII. Party Wall Easements, Etc.
                                A. Easements in General
                                B. Creating and Extinguishment
                                C. Party Wall Concept
                                D. Party Wall Application
                                E. Creation and Termination
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