Prep agent Financing
To determine the amount of economic obsolescence suffered by a commercial property, which of the following questions would be the most relevant? A. Are the tenants in the neighborhood prospering? B. Is the rental schedule of the building equitably charged to the tenants? C. Should a fire escape be installed? D. Can the building be operated efficiently?
A. Are the tenants in the neighborhood prospering? Economic obsolescence is due to causes outside of the property in question, so the most relevant question has to do with the neighborhood rather than the property or business.
Which statement is not correct regarding mortgage fraud? A. Mortgage fraud is punishable by up to 40 years in federal prison. B. The use of inflated appraisal in collusion with a lender. C. Mortgage fraud is investigated by the FBI. D. Mortgage fraud can be created through the use of false identity on loan applications without the true person's knowledge.
A. Mortgage fraud is punishable by up to 40 years in federal prison. Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application in order to obtain a loan, or to obtain a larger loan than could have been obtained had the lender or borrower known the truth. While mortgage fraud is a federal crime, penalties are generally handled at the state level and are less severe than "40 years in federal prison".
Which of the following statements concerning the Real Estate Settlement Procedures Act (RESPA) is false? A. Real estate brokers may not split a commission with cooperating members of the multiple listing service. B. A lender may not receive a referral fee for sending a seller to a specific title insurance company. C. RESPA covers all sales of one-to-four family residences when the purchaser is obtaining a federally related mortgage loan to purchase the property. D. All persons obtaining a federally regulated new mortgage loan to purchase a single-family residence must receive a copy of the Home Loan Toolkit.
A. Real estate brokers may not split a commission with cooperating members of the multiple listing service. The Real Estate Settlement Procedures Act, or RESPA, was enacted by Congress to provide homebuyers and sellers with improved disclosures of settlement costs and to eliminate abusive practices in the real estate settlement process. While many kickbacks and referral fees are prohibited, RESPA does allow "payment pursuant to cooperative brokerage and referral arrangements", like agreements between MLS members.
When a lender speaks of "discounting," the lender is probably referring to: A. The loan proceeds disbursed by the lender are less than the face value of the note B. The difference between the nominal interest rate and the effective interest rate on a specific loan C. The process of determining the effective interest rate D. The process of determining the actual yield of a given loan by adjusting the variable interest rate
A. The loan proceeds disbursed by the lender are less than the face value of the note Discounting is selling a note for an amount that is less than what is owed.
When financing new construction, the lender usually releases the final payment to the builder: A. after the lien period has expired. B. when the owner accepts the property. C. when the work has been completed. D. after the notice of completion has been recorded.
A. after the lien period has expired. A lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. A new construction lender will generally hold at least 10% of the total loan amount to help protect the new construction against any mechanic's liens. Once the lien period has expired, the lender will release final payment to the builder in a lump sum.
When purchasing with FHA financing, a new buyer would normally do each of the following except: A. apply to a local FHA office for the FHA appraisal. B. buy a home which conforms with FHA requirements and restrictions. C. pay for mortgage insurance protection. D. apply directly to a bank or savings and loan.
A. apply to a local FHA office for the FHA appraisal. The Federal Housing Administration (FHA) insures lenders against loss in the event of a default. To get an FHA loan, borrowers go to qualified lenders- there is no FHA office. Contrary to what many think, FHA loans do require (and include) mortgage insurance premiums (MIP). This is different than Private Mortgage Insurance (PMI).
A clause in a loan document which makes the payments periodically increase is known as a A. escalation clause. B. alienation clause. C. acceleration clause. D. interest clause.
A. escalation clause. An escalation clause is a clause in a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined. An important example of this is a contract that adjusts for inflation
A veteran of the armed forces may obtain a mortgage for the full purchase price of a home with no requirement for down payment. To provide an additional benefit to the veteran, the Department of Veterans Affairs will also: A. guarantee a portion of the loan. B. pay the entire closing costs. C. inspect the property. D. regulate the interest rate.
A. guarantee a portion of the loan. The VA protects participating lenders from loss in the event of foreclosure by guaranteeing up to 50% of the loan, depending on the loan amount. This is done at no cost to the veteran, so it is an added benefit.
In an installment land contract, what type of title did the seller retain? A. legal B. record C. equitable D. joint
A. legal With an installment land contract, the seller retains legal title until the final payment is made- just as with a traditional lender.The buyer receives equitable title at closing of the transaction, that is not the same as the property being fully paid off. It just means the contracts have been signed and the terms have been agreed upon.Upon final payment to the seller, the buyer receives legal title.
A subordination clause in a mortgage or trust deed: A. puts the loan in an inferior position in regard to other liens and encumbrances against the property. B. allows a readjustment and alteration of the terms as stated in the trust deed. C. permits the obligation to be paid off prior to the end of the anticipated term. D. prohibits the grantor from obtaining another loan before the original loan is paid in full.
A. puts the loan in an inferior position in regard to other liens and encumbrances against the property. Subordination is the process by which a creditor is placed in a lower priority for the collection of its debt from its debtor's assets than the priority the creditor previously had. Subordination is the act of yielding priority. It is often said that the debt is subordinated, but really it's the right of the creditor to collect the debt that has been de-prioritized. Generally, first lenders require this from a 2nd lender during a re-finance to insure the primary mortgage is paid first (should the borrower default).
A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company and is called: A. warehousing. B. package financing. C. blanket financing. D. discounting.
A. warehousing. Warehousing refers to the process whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market. The "warehousing" occurs when individual loans are bundled, often with a common element such as the size of the mortgage or credit worthiness of the borrowers, and sold as a single unit. Save for Review Provide Feedback
If each of the following loans would otherwise require compliance with the Federal Truth-in-Lending Act, which one would be exempt based on the type of loan itself? A. A $20,000 signature loan from a consumer finance company B. An agricultural loan by a bank C. A VA loan from a federally-chartered savings and loan association D. A $25,000 loan from a credit union for home improvement
B. An agricultural loan by a bank The Truth-In-Lending Act was designed to protect borrowers by requiring lenders to make meaningful disclosures of credit terms to borrowers. The Truth-in-Lending Act does not cover agricultural loans, but does cover home loans, home improvement loans, home equity loans, signature loans and credit cards.
Who is the recipient of the mortgage insurance payment on an FHA insured loan? A. State real estate organization B. FHA C. Mortgagor D. The lending institution
B. FHA An FHA loan is a mortgage that's insured by the Federal Housing Administration (FHA). Borrowers still pay mortgage insurance premiums, but the premiums are paid directly to the FHA. This is different than the private mortgage insurance that conventional loans require, but it's for the same purpose- to protect the lender against payment default.
Which of the following is not a characteristic of a conventional loan? A. Security rests on the borrower's ability to pay and the collateral pledged B. It is never insured by a private agency C. It is neither insured nor guaranteed by a public agency D. The ratio of the loan to the value of the property usually does not exceed 80% without private mortgage insurance
B. It is never insured by a private agency A conventional mortgage is a home loan that isn't guaranteed or insured by the federal government, so they are generally insured by private agencies. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac typically require down payments of at least 3%.
Which of the following is not true of conventional loans? A. They are made to the buyer without governmental insurance or guarantee B. The requirements to qualify are uniformly fixed by state law C. The policy requirements of the lenders are not uniform D. They generally require a higher down payment than non-conventional loans
B. The requirements to qualify are uniformly fixed by state law Not only are guidelines not uniform, qualification standards can vary enormously from lender to lender. There are no state-mandated qualifying requirements for conventional loans.
What is the clause in a mortgage instrument that prevents the assumption of a mortgage by a new purchaser without the lender's permission? A. defeasance clause. B. due-on-sale clause. C. power of sale clause. D. acceleration clause.
B. due-on-sale clause. A due-on-sale clause, or alienation clause, provides that when property is sold, the lender may either declare the entire debt due immediately or permit the buyer to assume the loan at an interest rate acceptable to the lender. The due-on-sale clause allows the lender to prevent a future purchaser of the property from being able to assume the loan, particularly if the original interest rate is low. A defeasance clause requires a lender to execute a satisfaction of mortgage once the loan has been fully repaid. The acceleration clause is used if the borrower is in default. Save for Review Provide Feedback
Many states permit mortgagors to redeem their property after default but before a foreclosure sale. This right is called a(n): A. statutory right of redemption. B. equitable right of redemption. C. mortgagee's right of redemption. D. owner's right of redemption.
B. equitable right of redemption. If a borrower in default pays the lender the amount in default (plus costs) BEFORE the foreclosure sale, it is known as an equitable right of redemption (not applicable in all states). Certain states also have a period of time AFTER a foreclosure sale in which the borrower in default may redeem the property if the borrower pays the court- this is called a statutory right of redemption.
An individual who obtains a real estate loan and signs a note and a mortgage is known as the: A. optionor. B. mortgagor. C. optionee. D. mortgagee.
B. mortgagor. The lender is called the mortgagee. The lender has the "ee" at the end of the word because they are receiving the promissory note from the mortgagor who gives the note. After the note is given then the mortgagor receives the money.An optionor is an owner who gives an optionee, a prospective purchaser or lessee, the right to buy or lease the owner's property at a fixed price within a certain period of time.
The type of real estate loan that allows the lender to increase the outstanding balance of a loan up to the original sum in the note while advancing additional funds is the: A. growing equity mortgage. B. open-end mortgage. C. wraparound mortgage. D. graduated payment mortgage.
B. open-end mortgage. An "Open End Mortgage" is an expandable loan in which the borrower is given a limit up to which he or she may borrow, with each incremental advance to be secured by the same mortgage. The lender is allowed to advance additional funds to increase the outstanding balance of the loan at the borrower's request, up to the original loan limit of the promissory note.
Federal income tax regulations allow homeowners to reduce their taxable income by amounts paid for A. both principal and interest. B. real estate property taxes and interest. C. repairs and maintenance. D. hazard insurance premiums.
B. real estate property taxes and interest. Real estate property taxes, mortgage interest, points for loans, and some origination fees can be deducted on income tax returns. The law does not permit tax deductions for ordinary repairs, home maintenance, and hazard insurance premiums.
The annual percentage rate (APR) is defined by the Federal Truth-in-Lending Law as: A. the total of the direct costs of credit paid by a borrower, expressed as a variable rate. B. the cost paid each year to borrow money, including fees, expressed as a percentage. C. the total of all costs which the borrower must pay to get the loan, including closing costs. D. The total of only the indirect costs of credit which the borrower must pay, excluding fees.
B. the cost paid each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of a borrower's cost of borrowing money. It reflects not only the interest rate, but also the fees a borrower must pay to get the loan expressed as a percentage. When the APR is used in advertising by a lender, it reveals the particularities of costs in credit in percentage terms. [If the ad only states the APR, then other disclosures are not necessary.]
A mortgage results in which of the following? A. A contractual agreement between a lender and a borrower with no lien involved B. A general lien placed on all properties owned by a borrower C. A specific contractual lien on the property being financed D. A judgement lien placed on the property being financed
C. A specific contractual lien on the property being financed A mortgage is the most common example of a specific and voluntary lien. The lien is created by a contractual agreement and it is specific to the property being financed. Save for Review Provide Feedback
A note on which only the interest is paid during its term is called: A. An installment note B. An amortized note C. A straight note D. Void
C. A straight note In a Straight Note there are no principal payments made. The entire principal amount of the loan is paid off at maturity or the end of its term. [The interest is paid off either at the end or during note's term.]
Who provides funds for Veterans Affairs (VA) loans? A. Freddie Mac B. The secondary mortgage market C. Approved lenders D. HUD
C. Approved lenders A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The basic intention of the VA home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment. Save for Review Provide Feedback
How is the capital gain calculated when an owner sells a principal residence? A. By subtracting selling expenses from the sales price B. By subtracting the selling expenses from the original purchase price C. By subtracting the property's adjusted cost basis from the net sales price D. By subtracting the sales price from the original purchase price
C. By subtracting the property's adjusted cost basis from the net sales price Capital gain is an economic concept defined as the profit earned on the sale of an asset which has increased in value over the holding period. Taxable capital gains from the sale of a principal residence are calculated by subtracting the adjusted cost basis from the net proceeds of sale.
When the term "beneficiary statement" is used by those in real estate finance, it identifies a statement made: A. By the insurer, stating the amount that will be paid to the policyholder if the improvements are destroyed; B. Designating the one who will receive the property in the event of the borrower's death; C. By the lender, as to the current balance due to pay off a real estate loan; D. By the property owner, listing the beneficial features of an assumable loan
C. By the lender, as to the current balance due to pay off a real estate loan; Beneficiary Statement: Document in which the Lender provides the present balance of a loan. Save for Review Provide Feedback
A "GPAM" mortgage loan provides for: A. A long-term loan consisting of a series of short-term notes. B. Renegotiation of the interest rate on the note. C. Deferment of certain payments on the principal during the early period of the loan. D. Adjustment of its interest rate as market interest rates change.
C. Deferment of certain payments on the principal during the early period of the loan. Graduated Payment Adjustable Mortgage (GPAM) allows for the deferment of certain principal payments.A graduated payment mortgage loan, often referred to as GPM, is a mortgage with low initial monthly payments which gradually increase over a specified time frame. These plans are mostly geared towards young people who cannot afford large payments now, but can realistically expect to raise their incomes in the future. For instance a medical student who is just about to finish medical school might not have the financial capability to pay for a mortgage loan, but once he graduates, it is more than probable that he will be earning a high income. It is a form of negative amortization loan.
Homeowners may deduct all of the following expenses on their tax return except: A. Property taxes paid. B. Mortgage interest paid. C. Depreciation and maintenance expenses. D. Points on a purchase money mortgage.
C. Depreciation and maintenance expenses. Maintenance, depreciation, and repair can only be deducted in commercial real estate. Save for Review Provide Feedback
It would be to the advantage of lending institutions to waive prepayment penalties when which of the following is occurring? A. The Federal Reserve drastically raises the discount rate and reserve requirement B. The Federal Reserve sets standards for banks to follow C. Funds are in short supply and the demand for loans is high D. Funds are easily available and the demand for loans is low
C. Funds are in short supply and the demand for loans is high It benefits lending institutions to waive prepayment penalties when funds are in short supply and the demand for loans is high. This incentivizes early mortgage payoff, which creates an inflow of funds that can be loaned back out.
An increase in the availability of money leads to which of the following effects on interest rates? A. No effect on interest rates, due to TILA guidelines B. No effect on interest rates, due to RESPA guidelines C. Interest rates would go down D. Interest rates would go up
C. Interest rates would go down Just like most things in a free market economy, mortgage loans are subject to the laws of supply and demand. Thus, when there is more mortgage money in the market place "looking for a home," borrowers have more choices, which leads to increased competition among lenders, which leads to lower interest rates.
Which of the following statements concerning typical land sale contracts is correct? A. The buyer is usually not responsible to pay their property taxes until the seller has delivered a deed to the property. B. The land sale contract is similar to a lease in that the buyer had a right of possession but no rights in the title. C. Land sale contracts are the least secure method of financing for the buyer because the seller retains the title and the buyer is merely the equitable owner. D. The buyer has absolute assurance of receiving title upon performance of the contract.
C. Land sale contracts are the least secure method of financing for the buyer because the seller retains the title and the buyer is merely the equitable owner. A land contract is a form of seller financing. It is similar to a mortgage, but rather than borrowing money from a lender or bank to buy real estate, the buyer makes payments to the real estate owner, or seller, until the purchase price is paid in full.
The Real Estate Settlement Procedures Act (RESPA) applies to which of the following activities? A. Title and escrow companies closing on commercial properties B. Licensed lenders closing on commercial loans C. Licensed lenders closing on home loans D. Title and escrow companies closing on residential properties
C. Licensed lenders closing on home loans The Real Estate Settlement Procedures Act, or RESPA, was enacted by Congress to provide homebuyers and sellers with improved disclosures of settlement costs and to eliminate abusive practices in the real estate settlement process. It applies to holders of Mortgage Broker licenses and Mortgage Lender licenses who are closing on residential home loans. Save for Review Provide Feedback
When property is appraised as part of the loan application process, a copy of the appraisal: A. Must be shared with all the parties. B. Is confidential and for the lender's use only. C. Must be provided to the borrower. D. Is given to the seller only upon written request.
C. Must be provided to the borrower. Per ECOA's Regulation B, applicants for first-lien loans on a dwelling must be provided with copies of appraisals, as well as other written valuations developed in connection with the application, whether or not the applicants request copies.
The term "security interest" is best defined as: A. The use of stocks and bonds or other securities as collateral for a loan against real property B. The interest on an insured mortgage C. The creditor's interest in the debtor's property D. The interest payments on a conventional loan
C. The creditor's interest in the debtor's property A creditor maintains a security Interest in the property of a debtor. Save for Review Provide Feedback
The Equal Credit Opportunity Act makes it illegal for lenders to refuse credit to or otherwise discriminate against: A. a new homebuyer who does not have a favorable credit history. B. a parent of twins who receives public assistance and who cannot afford the monthly mortgage payments. C. a single person who receives public assistance. D. an unemployed person with no job prospects and no identifiable source of income.
C. a single person who receives public assistance. The Federal Trade Commission (FTC), the nation's consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA). The ECOA prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.
The maximum permissible "loan to value ratios" are: A. fixed by law for conventional loans. B. based on the banker's competitive market analysis. C. based on sale price or appraised value, whichever is lower. D. not determined by federal statute in the case of FHA loans.
C. based on sale price or appraised value, whichever is lower. Although various banks, mortgage companies and programs have different LTVs, the lower, more conservative number is used.
In a fixed-rate, fully amortized loan: A. a balloon payment will be made at the end of the loan. B. each mortgage payment reduces the principal by the same amount. C. each mortgage payment amount is the same. D. the principal amount in each payment is greater than the interest amount.
C. each mortgage payment amount is the same. A fully amortized loan is paid off slowly, over time, in equal payments. Regular periodic payments are made over a term of years. In a partially amortized loan, such as a balloon mortgage, the principal and interest payments do not pay off the entire loan. A loan balance remains when the final payment is made. In the fully-amortized loan, the lender credits each payment first to the interest due, then to the principal amount of the loan. As a result, while each payment remains the same, the portion applied to repayment of the principal grows and the interest due declines as the unpaid balance of the loan is reduced.
The difference between the value of a property and the total amount of liens against it is known as: A. actual cash value. B. collateral. C. equity. D. a down payment.
C. equity. Equity is the difference between how much a property is worth and how much is owed on the property. A lien is a hold or claim on the property of another to satisfy an unpaid debt.
A purchaser cannot qualify for conventional financing and negotiates a contract for deed with a seller. The buyer in this arrangement: A. must lease the property from the seller for the duration of the contract term. B. receives a deed to the property at closing. C. has possession and pays the property expenses and taxes. D. has a full legal interest in the property.
C. has possession and pays the property expenses and taxes. In a contract for deed arrangement, the buyer takes full possession of the property and gets equitable title to the property. The buyer agrees to pay real property taxes, insurance premiums, and for the upkeep of the property. The seller is not obligated to execute and deliver the deed until all the terms of the contract have been satisfied (the debt has been paid off), the buyer isn't required to lease the property first, and the buyer won't acquire full legal interest until the terms of the contract have been fulfilled.
Laws regulating the maximum rates charged for loans are primarily enacted by: A. the World Trade Organization. B. the Treasury Department. C. individual states. D. congress.
C. individual states. Usury laws are enacted by the states. Federal law generally takes precedence over individual state usury laws for most first lien mortgage loans, so most banks that provide such loans for housing are exempt from state usury laws per US Code 12 U.S.C. 1735f-7. In addition, state usury laws don't apply to loans, mortgages, credit sales or advances (even a junior lien mortgage) if the lender is insured or provided by a US government agency, if it's a VA or FHA loan, or for loans that comply with Fannie Mae or Freddie Mac guidelines.State usury laws do apply, however, to private lenders who make isolated transactions and to home-sellers who make a first lien purchase money loan or land installment contract with a buyer.
The owner of an apartment building borrowed $75,000 to install a pool on the property. One year later, the property's value increased by $30,000 due to the improvement. This is an example of: A. highest and best use. B. depreciation. C. leverage. D. plottage.
C. leverage. Leverage is maximizing the use of borrowed money, such as using the proceeds from a loan to increase the value of a property. Save for Review Provide Feedback
Jones, a bachelor, sells his home. How much capital gain can he realize without owing any federal income tax? A. $500,000. B. $175,000. C. $125,000. D. $250,000.
D. $250,000. The Taxpayer Relief Act of 1997 set $250,000 as the exclusion for a single filer taxpayer and $500,000 for a couple filing jointly.
The term "warehousing" as used in real estate financing, means: A. Unregulated real estate loans B. The financing of industrial warehouses C. A large bank or savings and loan D. A mortgage company collecting loans prior to resale
D. A mortgage company collecting loans prior to resale Warehousing is when a lender collects loans and puts them out as a package for sale. It is the process by which a mortgage banker or mortgage broker assembles mortgages that he or she has made and prepares the mortgages to be sold in the secondary mortgage market. By selling these mortgages the originator now has additional capital that can be used to make more mortgages which in turn may be sold in the secondary mortgage market. Save for Review Provide Feedback
Which of the following expenses is tax deductible for homeowners? A. Addition of a pool. B. Utility payments. C. Pest control. D. Interest paid on mortgages.
D. Interest paid on mortgages. The only allowable deduction on the tax return for the homeowner is for taxes and mortgage interest actually paid. Save for Review Provide Feedback
The monthly payment on a mortgage loan is, by statute, considered late when received by the lender: A. 5 days after the due date B. 10 days after the due date C. 3 days after the due date D. More than 10 days after the due date
D. More than 10 days after the due date Payment is considered late if the Lender receives it more than ten (10) days after the due date.
Tax credits are a direct offset against taxes due rather than deductions against income. Credits are usually available for all of the following types of real estate except: A. Rehabilitation of older buildings. B. Restoration of historic property. C. Low-income housing projects. D. New ventures that are running at a loss.
D. New ventures that are running at a loss. Tax credits are an incentive offered by jurisdictions to encourage special efforts to improve the quality of life in a community through restoring abandoned buildings and providing shelter for the needy.
Which of the following statements is correct concerning the relationship between an effective interest rate and a nominal interest rate? A. The effective rate is the rate the buyer will pay; the nominal rate is the rate named in the loan application B. The nominal interest rate is the rate actually paid by the borrower for the use of the money; the effective interest rate is the rate specified in the note; C. The effective interest rate is always lower because the nominal interest rate includes charges other than interest D. The effective interest rate is the rate actually paid by the borrower for the use of the money; the nominal interest rate is the rate specified in the note;
D. The effective interest rate is the rate actually paid by the borrower for the use of the money; the nominal interest rate is the rate specified in the note; Effective interest rate is the interest rate that the borrower actually pays on his loan. The nominal interest rate is the interest rate specified in the note.
In an FHA insured loan transaction, the: A. interest rate is set by the FHA. B. mortgage insurance premium may be paid by either the seller or the buyer. C. mortgage insurance premium must be paid by the seller. D. discount points may be paid by the seller or the buyer.
D. discount points may be paid by the seller or the buyer. Either the seller or the buyer may pay discount points in an FHA loan transaction. Interest rates are not set by the FHA, but are negotiated between the lender and the buyer. An FHA loan includes a one-time upfront mortgage insurance premium (MIP), which can be financed, paid by the buyer, with an additional ½% MIP added to the monthly payments. The FHA does not set interest rates, and mortgage insurance must be paid by the buyer (not the seller).
A trust deed may be released from the records by: A. payment in full. B. recording the note. C. a title report. D. recording a reconveyance deed.
D. recording a reconveyance deed. In order to clear the Deed of Trust from the title to the property, a Deed of Reconveyance must be recorded with the County Recorder or Recorder of Deeds.
The seller under a land contract is called: A. the grantee. B. the vendee. C. the grantor. D. the vendor.
D. the vendor. The seller under a land contract can also be referred to as the "vendor". Land contracts are also known as installment contracts. In this type of arrangement, the buyer occupies the property, but the title is held in the name of the seller until some future point in time, often when the last payment is made.