RPL-101: Law of Real Estate Transactions and Mortgages
Welcome to LawShelf’s course on real estate transactions and mortgages. In this course, we’ll discuss the purchase and financing of real estate, due diligence in real estate transactions, property ownership and rights and the unique challenges associated with common property ownership. This is an introductory level course, and no prior knowledge of real estate law is required.
For decades, owning one’s own home has been essential to “the American Dream.” Since the 1950s, the percentage of American homeowners has increased dramatically for many reasons, including the growth of suburbs, population increases, low interest rates and more accessible financing.
Real estate is a historically stable investment, providing investors with consistent returns and stability unmatched by most securities. While a stock’s price may fall to zero, a parcel of real estate almost never loses all its value. Additionally, homeownership offers tax advantages, such as the ability to claim tax deductions on mortgage interest and property taxes.
This course’s goal is to provide you with an understanding and knowledge of the most important and most frequently-encountered issues in real estate acquisition and ownership. We’ll ensure that you overlook no major detail during the purchasing or selling process and comprehend the benefits and advantages attendant to home ownership.
The second part of the course (on mortgages) covers the concepts, documents and regulations that are important to transactions wherein land is used to secure a purchase loan. It discusses disclosures, document execution, closing procedure, consumer protection laws, default and foreclosure.
It focuses on the mortgage application process, common mortgage features, including those of various types of mortgages, such as fixed-rate, adjustable-rate and balloon-payment mortgages. We’ll also look at second mortgages and home equity loans. Also covered are closings and mortgage execution, introducing the forms common to mortgage closings and their purposes. We will also discuss the importance of recording mortgage deeds and the consequences of failing to do so in a timely manner.
The court segues to consumer protection laws and their impacts on the mortgage process. We will also focus on credit reporting, anti-discrimination and collections laws and their impacts on mortgages. Part of that discussion included subprime mortgages and the subprime mortgage crisis that (at least in part) led to the Great Recession of 2009.
Finally, we’ll cover what happens when borrowers default on their mortgages. We will discuss collection efforts short of foreclosure and the foreclosure process, including a discussion of defenses against mortgage foreclosure, some of which are established or aided by federal legislation.
After having completed this course, you will have a better understanding of the mortgage process, from the planning and application stage all the way through foreclosure.
Best of luck and we welcome your feedback.