Mortgage law is primarily governed by state and common law. Mortgages are regulated by federal or state laws or agencies, depending on the law in which they were chartered or incorporated. The Office of Thrift Supervision, an office of the Treasury Department, regulates federally chartered savings associations. The Comptroller of Currency charters and regulates national banks. Federal credit unions are licensed and regulated by the National Credit Union Administration. Minor ambiguities can be resolved more easily with a writer`s affidavit. This document is attached to the act in order to clarify the ambiguous wording in the legal description. It cannot be used to repair errors that would significantly alter the property or its value. The author`s affidavit must also comply with all applicable rules established by the county and state, but it is not considered an actual correction of the previous document. A legal description is an accurate, legally significant and binding summary of a property survey. You will find it on the existing deed, i.e. the last deed used to transfer the property. The legal description may have a margin, or it may be indented to make it easy to recognize.
Sometimes it appears on an attachment taken by reference to the front of the document. The description of a mortgage contract or title insurance obligation must match the legal description on the deed. A mortgage involves the transfer of a share of land as collateral for a loan or other obligation. This is the most common method of financing real estate transactions. The mortgagee is the party who transfers the share of the land. The mortgagee, usually a financial institution, is the provider of the loan or other interest in exchange for the security. Usually, a mortgage is paid in installments that include both interest and a payment on the principal borrowed. Failure to pay will result in seizure of the mortgage. Foreclosure allows the mortgagee to declare that all of the mortgage debt is due and must be paid immediately. This is achieved by an acceleration clause in the mortgage. Failure to pay the mortgage debt after the foreclosure of the property will result in the seizure of the security and its sale to pay the remaining mortgage debt. The foreclosure process depends on state law and the terms of the mortgage.
The most common actions are court proceedings (judicial seizure) or granting powers to the mortgagee to sell the property (enforcement). Many states regulate acceleration clauses and allow late payments to avoid foreclosure. Some states use instruments called trust indentures instead of traditional mortgages. The mortgagee and the mortgagee generally have the right to transfer their shares in the mortgage. Some States consider that even if the purchaser of a mortgage property does not explicitly assume the mortgage, the transfer is accepted. Mortgages use maturity and debit clauses to prevent the transfer of mortgages. These clauses allow an acceleration (with principal and interest payable immediately) of the mortgage. In 1982, Congress made these clauses nationally enforceable by passing the Garn-St Germain Depository Institutions Act of 1982. Contract and property law governs the transfer of mortgage interest. To transfer ownership of immovable property, the deed must contain a clear legal description of the property that identifies it.
In order to have a valid mortgage on a property, the mortgage must also contain this legal description. Thus, a legal description could be the Happy Valley subdivision, block 3, lot 4. A mortgage on property must be distinguished from a simple pledge. By granting or transferring property under a right or mortgage, full title is conditionally transferred to the mortgagee, and if not redeemed at the specified time, title becomes legally absolute, although equity will force repayment. But in a pledge, the special assets are transferred only to the secured creditor, the general ownership remains in the pledge. There have been a few cases of mortgages on movable property that have been found valid without actual possession by the mortgagee; But they are based on very particular reasons and can be considered exceptions to the general rule. But if you`re curious about the main types of legal descriptions and the components they form, read on. Correction documents are processed by submitting completed forms filed in public registries. Each state has a set of legal rules for certificates of correction. In some states — Pennsylvania, for example — each county in the state publishes a unique set of rules. If the legal description does not correctly draw the boundaries of the property or if it contains misdirection or refers to the wrong lot or if there is another substantive problem, a certificate of correction is required.
Errors in legal descriptions affect taxes, ratings and credit approvals. Unless it contains a complete and error-free legal description, a document must be corrected and re-registered. A legal description of a condominium identifies the unit and sets out the elements described in the corporation`s principal deed, including any amendments. Not used if the land is precious. It is similar to the Metes and Bounds description, but refers to physical, artificial or natural characteristics. For an example of how a legal description of a lot and block appears on an actual deed, see Example of an act – Lot and block. The inclusion of an accurate legal description of ownership is essential when transferring or pledging real estate. If a property is in a subdivision, the legal description can be very simple.
It usually refers to one or more lots, the block (or blocks) on which the lots are located, in the name of the subdivision, the county and the state. In addition to the legal description, you may see additional identifying information on a land document. This is usually the address and a property tax identification number. There are 4 types of legal descriptions used in real estate in the United States: For properties in cities and developments, descriptions are shorter. Lot and block identifications refer to subdivision plates that contain object descriptions. Land surveyors create platforms to map the boundaries and dimensions of the property, respecting natural and built markings.