The "Business and Professions Code" regulates the amount of fee a "hard money lender" may charge. The size of the fee depends on the length of the loan and whether it is a "first trust deed" or "junior mortgage". For a loan that is less than two years, the maximum fee is 5%; for a loan between two and three years, the maximum fee is 10%; and for a loan of three years or more, the maximum fee is 15%.


These are questions that the above text answers:

1. What regulates the amount of fee a hard money lender may charge?
2. How does the size of the fee charged by a hard money lender depend on the loan?
3. What is the maximum fee for a loan that is less than two years?
4. What is the maximum fee for a loan between two and three years?
5. What is the maximum fee for a loan of three years or more?
6. What is the "Business and Professions Code"?
7. What is a first trust deed?
8. What is a junior mortgage?
9. How does the length of the loan affect the fee charged by a hard money lender?
10. What are the regulations for hard money lending in California?

"Loan assumption fees" are considered "finance charges".


These are questions that the above text answers:

1. What are loan assumption fees?
2. How are loan assumption fees classified?
3. Are loan assumption fees considered finance charges?
4. What is the impact of loan assumption fees on finance charges?
5. Are loan assumption fees related to real estate?
6. What is the purpose of loan assumption fees?
7. Are loan assumption fees common in real estate transactions?
8. How do loan assumption fees affect the overall cost of a loan?
9. Are loan assumption fees regulated by real estate law?

A "trust deed" that has already been recorded with "standard clauses" is a "fictitious trust deed".


These are questions that the above text answers:

1. What is a fictitious trust deed?
2. What are standard clauses in a trust deed?
3. What is the implication of recording a trust deed with standard clauses?
4. What is the significance of a trust deed being recorded?
6. What is the purpose of standard clauses in a trust deed?
8. Can a trust deed be considered fictitious if it does not have standard clauses?
9. What is the difference between a fictitious trust deed and a regular trust deed?
10. How does recording a trust deed affect real estate loan payoff penalties?

When the loan is "paid in full," there is no need for the borrower (sometimes called the "trustor") to sign anything.


These are questions that the above text answers:

1. What is the term used to describe when a loan is completely paid off?
2. What is the alternative term for a borrower in real estate transactions?
3. Is it necessary for the borrower to sign anything when the loan is paid in full?
4. What is the significance of the borrower not needing to sign anything when the loan is paid in full?
5. Where can one find fact sheets about real estate in California?
6. What is the purpose of real estate fact sheets?
7. What is the content of the fact sheets mentioned in the text?
8. What is the website where the fact sheets can be accessed?

A mortgage provides the most protection for the owner if they are unable to make payments, as it gives them "longer period of time to cure the default". A trust deed, on the other hand, can be foreclosed quickly and doesn't provide much time for the owner to make up the payments. A "land sales contract" and a "fixed-term lease with an option to buy" both require a court process, but are usually "short and simple".


These are questions that the above text answers:

1. What is the main advantage of having a mortgage for the owner?
2. How does a trust deed differ from a mortgage in terms of foreclosure?
3. What is the main disadvantage of a trust deed for the owner?
4. What is the common characteristic of a land sales contract and a fixed-term lease with an option to buy?
5. How does the court process differ for a land sales contract and a fixed-term lease with an option to buy compared to a mortgage or trust deed?
6. What is the typical length of the court process for a land sales contract or a fixed-term lease with an option to buy?
7. What is the main disadvantage of a land sales contract or a fixed-term lease with an option to buy?
8. How does a mortgage provide more time for the owner to cure a default compared to a trust deed?
9. What is the main advantage of a trust deed in terms of foreclosure?

A "novation agreement" entered into by the mortgage holder, the buyer, and the seller will "substitute" the buyer's responsibility for the mortgage "obligation" from the original holder to the buyer.


These are questions that the above text answers:

1. What is a novation agreement in real estate law?
2. Who are the parties involved in a novation agreement?
3. What does a novation agreement substitute in real estate transactions?
4. What is the purpose of a novation agreement in relation to mortgage obligations?
5. How does a novation agreement transfer responsibility for a mortgage obligation?
6. What is the role of the buyer in a novation agreement?
7. What is the role of the seller in a novation agreement?
8. What is the role of the original mortgage holder in a novation agreement?
9. What is the effect of a novation agreement on the buyer's responsibility for a mortgage obligation?
10. How does a novation agreement impact real estate loan payoff penalties?

A "collateralized loan" is a loan that is "secured" by something other than a piece of real estate.


These are questions that the above text answers:

1. What is a collateralized loan?
2. How is a collateralized loan different from a loan secured by real estate?
3. What does it mean for a loan to be secured?
4. What is the purpose of securing a loan?
5. Can a collateralized loan be secured by real estate?
6. What are some examples of collateral that can be used to secure a loan?
7. Are collateralized loans common in the real estate industry?
8. How does a collateralized loan contribute to financial stability?
9. Are there any penalties associated with paying off a collateralized loan?

A "pledge agreement" is a document used to secure a loan using another loan as "collateral". This is similar to "hypothecation", which also pledges a loan or property as security, but the borrower keeps possession of it.


These are questions that the above text answers:

1. What is a pledge agreement?
2. How is a pledge agreement used to secure a loan?
3. What is the difference between a pledge agreement and hypothecation?
4. What does it mean to use another loan as collateral in a pledge agreement?
5. In a pledge agreement, who keeps possession of the loan or property being pledged?
6. What is the purpose of a pledge agreement in real estate law?
7. How does a pledge agreement differ from other methods of securing a loan?
8. Can a pledge agreement be used for any type of loan?
9. Are there any specific requirements or conditions for a pledge agreement to be valid?
10. What are the potential consequences if a borrower defaults on a loan secured by a pledge agreement?

Changes in "mortgage financing" can affect the price of real estate. Value is based on how much something is worth and how it is perceived, and is not affected by the cost of the loan. The purpose of the property is also not affected.


These are questions that the above text answers:

1. How can changes in mortgage financing impact the price of real estate?
2. What factors determine the value of real estate?
3. Does the cost of a loan affect the value of real estate?
4. Is the purpose of a property affected by changes in mortgage financing?
5. Can changes in mortgage financing affect the perception of real estate value?
6. Does the price of a loan impact the value of real estate?
7. Is the value of real estate solely determined by its perceived worth?
8. Does the purpose of a property play a role in determining its value?
9. How does mortgage financing influence the value of real estate?

A lender must give buyers a "Loan Estimate" within three days of getting their application. This "Loan Estimate" became law on October 3, 2015 and explains the mortgage terms and details that the lender has provided.


These are questions that the above text answers:

1. What is the purpose of the "Loan Estimate" in real estate transactions?
2. When did the "Loan Estimate" become a legal requirement for lenders?
3. How soon after receiving a mortgage application must a lender provide the "Loan Estimate" to the buyer?
4. What information does the "Loan Estimate" provide to the buyer?
5. What is the significance of October 3, 2015, in relation to the "Loan Estimate"?
6. Who is responsible for providing the "Loan Estimate" to the buyer?
7. What are the consequences for a lender who fails to provide the "Loan Estimate" within the required timeframe?
8. How does the "Loan Estimate" impact mortgage lending?
9. What are the key details and terms that the "Loan Estimate" explains to the buyer?
10. Where can buyers find more information about the "Loan Estimate" in real estate transactions?

After the first 12 months of a "land sales contract," it is not possible to stop someone from paying the loan off early. This is true for both "land sales contracts" and "trust deed loans." There are limits on how long a lender can punish someone for paying the loan back before the agreed-upon time.


These are questions that the above text answers:

1. What are the limits on early payoff penalties for land sales contracts and trust deed loans?
2. Is it possible to stop someone from paying off a land sales contract early after the first 12 months?
3. Are there any restrictions on early loan payoff for trust deed loans?
5. Are there any penalties for paying off a land sales contract early?
7. Are there any limitations on early loan payoff for trust deed loans?
8. Can a lender prevent someone from paying off a trust deed loan early?
10. Are there any restrictions on early loan payoff for land sales contracts?

A "dragnet" in the context of mortgages refers to any money that is lent to or on behalf of the borrower in the future.


These are questions that the above text answers:

1. What does the term "dragnet" refer to in the context of mortgages?
2. How is a dragnet mortgage related to money lent to or on behalf of the borrower?
3. What is the purpose of a dragnet mortgage?
4. In what context is the term "dragnet" used in real estate law?
5. Can a dragnet mortgage include future loans to the borrower?
6. What is the significance of understanding dragnet mortgages in real estate law?
7. Are dragnet mortgages common in real estate transactions?
8. How does a dragnet mortgage affect the borrower's financial obligations?
9. Are there any legal implications associated with dragnet mortgages?
10. What should borrowers be aware of when dealing with dragnet mortgages in real estate transactions?

A "due-on-sale clause" is a part of a loan agreement that allows a lender to demand the loan to be paid back in full if the owner of the property transfers any interest in the real estate. This can be done, for example, if the property is sold. However, there are exceptions for transfers made between family members, such as when a home is passed down to a relative.


These are questions that the above text answers:

1. What is a due-on-sale clause in a loan agreement?
2. When can a lender demand a loan to be paid back in full?
3. What triggers a due-on-sale clause?
4. Are there any exceptions to the due-on-sale clause?
5. What type of transfers are exempt from the due-on-sale clause?
6. Can a property owner transfer any interest in the real estate without triggering the due-on-sale clause?
7. What is an example of a transfer that could trigger the due-on-sale clause?
8. Are there any circumstances where a due-on-sale clause would not apply?

"Demand", "utility", "scarcity" and "transferability" are known as the "elements of value" (DUST). Even though many people may want to own a home, they may not have the money to do so. Cost is not part of these elements of value.


These are questions that the above text answers:

1. What are the four elements of value in real estate known as?
2. What does the acronym DUST stand for in relation to real estate?
3. Are cost and affordability considered as elements of value in real estate?
4. What are the four elements of value in real estate that do not include cost?
7. What are the four key components of the DUST acronym?
8. Are demand, utility, scarcity, and transferability considered important in real estate?
9. What are the elements of value that determine the worth of a property?
10. Are the elements of value in real estate related to the cost of a property?