Financing Real Estate Transactions: A Basic Introduction

This exercise is designed as a basic introduction for the beginning student to the fundamental principles involved in real estate financing . However, real estate financing is a complicated topic and best dealt within an upper division Real Estate Finance class. So, this interactive tutorial will not complete the topic, except as typically addressed in a first year Property class.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. State the two primary concerns that arise when one party lends money to another.
2. List the instruments commonly involved in creating the borrower’s debt to the lender and the borrower’s duty to repay the debt.
3. Compare the functions of a mortgage, deed of trust, and an installment land sales contract.