Types of ownership.

There are different forms of ownership in real estate law. Let's take a look at them.

Sole ownership is a situation where one person is the sole owner of the property.

Joint tenancy is a type of joint ownership where two or more people hold a property together. If one
person dies, his claim to ownership ceases. A joint tenancy allows for a right of succession and is
without regard to inheritance laws. Not all states recognize joint tenancy.

A tenancy by the entirety is a joint tenancy that treats married couples as one person. If one dies,
the survivor is entitled to the entire tenancy in full, which only applies in situations where the couple
was actively married when they bought the property.

Dower refers to the interest in the husband's real estate that the widow receives for support. Most
jurisdictions treat a dowry as a life estate. Some states extend this right to widowers when their
wives die.

Joint tenancy is a type of ownership where co-owners own undivided interests in land. In the event
that one of the co-owners dies, his share passes to his heirs by inheritance or will. There is no right
to survive.

Applicable rights.

In a legal context, an accessory is something that is attached to or belongs to the land, so that it is
part of the property. It is usually physical in nature and less valuable than an actual piece of
property. Good examples include yards, inground pools, landscaping, septic tanks, and barns.
Ownership of accessories is transferred to the new owner by transfer or sale of the property.

Accretionary and riparian rights are considered related rights. The latter affects lands where a
stream or river flows. For example, upstream landowners should not reduce the flow of water and
deprive those downstream of its use. The increase applies to land adjacent to a body of water. If the
natural flow of water deposits soil on adjoining land, the property is said to be built on and the claim
to the increase automatically passes. A landowner who acquires property by accretion loses it if the
soil is carried away by the natural action of the river and deposited elsewhere.
Agreements, Terms and Restrictions.

In the past, property owners could use their land without maintenance. This is no longer the case as
there are many restrictions on the normal use of the property. Real estate sellers must comply with
government controls such as zoning, covenants, conditions, and restrictions on the size, price,
height, and number of improvements they can make.

A contract is an agreement to do or not to do certain things and is usually for the benefit of the
individual who is to benefit. The condition is the qualification of the real estate, which limits the use
and further transfer. It is always enforced by the grantor and the heirs.

Covenants and conditions are restrictions that are imposed when dividing a property into residential
lots. Anyone who purchases items undertakes to maintain them in accordance with the provisions of
the terms and conditions set forth.

Important terms of real estate law.

A deed is an official document that gives a person the right to own property. Grants ownership rights
to land. The document indicates the type of ownership and contains a clear description of the
property. In some cases, the deed states that, the owner has a valid title to the property warranty
certificate. Each state has specific laws governing the creation, execution, and recording of a deed.
There are many types of deeds and each is relevant to the type of purchase made, when acquiring a
property. Real estate lawyers should be able to advise their clients accordingly and recommend the
right deed.

Zoning is one of the restrictions that govern the use of real estate. There are three main zoning
categories residential, industrial, and commercial, and each has several subcategories with detailed
regulations. Control is at a local level, so lawyers must work with regional councils and local
governments to promote their client's interests.

Leases and leases stipulate that the terms of the lease are essential to both the owner and lessee of
the property, whether the land is used for commercial or residential purposes. Real estate lawyers
can help with the negotiation, drafting, and clarification of the terms of lease agreements.
Short-term rentals refer to self-contained apartments, that tenants rent for a short period of time,
usually on a monthly basis or for short-term stays. Such properties are subject to local housing
restrictions, which can be controversial.

Home owners’ associations are private or voluntary groups, formed to preserve the character of a
neighborhood. With the guidance of a real estate attorney, they can help resolve disagreements
about limitations, enforcement, and stipulations.

Earned money is a deposit, that assures the seller that the buyer is serious about the transaction.
The buyer pays 2% of the asking price, which is refunded if the deal doesn't go through. If the sale
goes through, 2% is used as a deposit.

A contingency is a provision, in a purchase contract that requires installation or repair to occur

before the contract becomes legally binding.

A termination clause, otherwise known as an escape clause, allows the parties to a sales contract to
back out if one party violates the terms of the contract.

An imaginable mortgage is one where the buyer takes over the loan from the previous owner.

A fixed-rate mortgage is one where the interest rates are constant, throughout the life of the
mortgage. It is ideal for people with a fixed monthly income.

Foreclosure refers to the process by which a mortgage lender takes over a property due to non-
payment.

A warranty deed is a legal document that guarantees that the title to the property is unencumbered.

A closing is a transaction where ownership of a property is transferred from one person to another.

Escrow refers to a third party that holds the property.

A real estate agent is a licensed professional who negotiates the sale and purchase of real estate.
Become a real estate attorney.

Like any legal professional, a real estate attorney must complete a law degree, obtain sufficient
education, and obtain a license to practice. Education and training, are key as they provide interns
with the knowledge and skills to handle real estate legal matters.

Education and training.

Anyone who wants to pursue a career in real estate must obtain a bachelor's degree from an
accredited law school. Most bachelor's programs last four years. While you don't have to major in a
specific field, it would be best if you earned an associate's degree in business because real estate
practice involves business transactions. Once you complete your first degree, you must sit and pass
the bar exam.

Next, register to take the Law School Admissions Test at any approved law school. It is a half-day
exam that has five multiple-choice sections and one unscored essay. These tests measure your
reading and verbal reasoning skills. To register, go to the Admissions Counselor website, create an
account, then search for a test date and test location near you. The Law School Admissions Test is
available four times a year. February, June, September, and December.

To get a taste of real estate law, you should practice with a real estate attorney in your area. Many
lawyers need support staff and clerks to help them with a variety of tasks, including titles, contract
drafting, and contracting. Use this opportunity to gain experience and build courage as a
practitioner.

Work as a real estate lawyer.

After passing the bar exam, you can go into private practice or be hired by a firm. You can work in
commercial real estate offices, alongside other lawyers or enter private practice. Some real estate
lawyers end up working for the state in regional building and land use departments. Other lawyers
work for financial and credit companies, and real estate developers. Experience is key. If you have 2-
5 years of experience, you should be able to find a job quickly.

Duties of a real estate attorney include.

Interpretation of decisions, laws, and regulations for real estate transactions.

Defending municipal code litigation.

Drafting and negotiation of real estate transactions.

Monitoring of legal risks in documents and corresponding advice to clients.

Drafting of lease agreements and amendments.

Compliance management and related regulatory services.

Support for legal and advisory needs related to the real estate portfolio.

Representing clients in the purchase and sale of real estate.

Ask yourself.

What does the term "property" include?

The term "property" includes the following.

Land.

Any buildings or structures thereon.

What laws govern real estate transactions?

In Morocco, real estate transactions are primarily governed by the Moroccan Civil Code, derived
from the Napoleonic Code.

What is a land registration system?

The land registration system allows the owner of the property, to obtain the ownership right
registered in the national real estate register. This registration cancels all prior rights, with respect to
this property.

The land registration system, can be defined as a real estate promotion system. The aim of this
publicity is to ensure complete transparency with respect to the plots.
Which office manages the registration of titles?

The registrar of real estate and mortgages is in charge of registering ownership rights. Each court of
first instance has its own registrar of real estate and mortgage register, who is in charge of the land
registry in relation to real estate located in the district of the relevant court of first instance.

What real estate rights need to be registered?

Property registration is optional in Morocco. However, once the property has been registered, the
rights to that property must be registered in the same register. As a result, owners must register real
estate rights, including the following.

A temporary seizure

Mortgages

Transfers

Encumbrances

What documents can landowners use to prove property ownership?

Once all the formalities are completed, the land registrar will issue the property title to the owner.
This document proves ownership of the property.

Can titles be searched online?

The land registrar provides a website that records information regarding most property rights.
However, this database is not accessible to the public, a username and password are required. This
database is primarily available to notaries, surveyors, and topographers.

Can foreigners own real estate? Are there nationality restrictions on land ownership?

There are generally no restrictions on foreign ownership of Moroccan land, except in very specific
cases. For example, Moroccan law prohibits the acquisition of interests in agricultural land by non-
Moroccans without the prior approval of a provincial agency.

Can the government expropriate real estate?

Property may be expropriated by the government and other authorities, but adequate
compensation must be paid.

How can one hold real estate?

In general, the share is held mainly in one of the following ways.

Transfer of property. purchase, donation, or inheritance.

Lease.

Co-ownership.

What are the common structures used in real estate investing?

Corporations, including real estate investment companies.

Co-ownership.

Partnership.

How are real estate transactions typically financed?

Most real estate financing is provided through institutional lenders such as banks. Interest rates are
generally fixed for a period of time or variable. The interest rate is based on the rate regularly
announced by the central bank (Bank Al-Maghrib).

Lending institutions usually take primary security of the real estate and related assets. Primary
collateral generally includes a mortgage.

Who usually creates documentation in real estate transactions?

In general, a notary is in charge of compiling documentation in real estate transactions. Each party
can choose its own notary at no additional cost. Sometimes the help of a lawyer is recommended.

Can an owner or tenant inherit responsibility for matters relating to the property, even if they
occurred before the property was purchased or occupied?

For properties held in freehold, government authorities can require the owner to clean up the
contamination, even if the owner did not cause it.

For leased properties, tenants are usually not responsible for environmental damage caused by a
previous tenant.

Does the seller or tenant retain any liabilities related to the properties after disposing of them?

The seller may retain obligations regarding the property even after disposing of it. The seller is
responsible for any pollution caused before, during, or after their ownership and for any
indebtedness secured by the mortgage the seller has placed on the property.

For leasehold properties, the tenant is generally not responsible for the obligations of the previous
tenant.
3. Real Estate Principles and Practices.

Real estate classes, real estate types.

Real estate asset class.

The real estate asset class is defined as “real estate,” a term that means land and any improvements,
made thereon that are permanent. These improvements can be natural water and trees, or artificial
buildings, houses, and fences.

Although you may hear the term “real estate asset classes,” it is not an accurate description of the
types of real estate. Real estate is an asset class, but is not further subdivided into asset classes.
Instead, different property types are categorized by property type and property class, not to be
confused with asset classes.

Property types.

The three most common types of real estate are residential, commercial, and land.

Residential.

A residential property is simply a property intended for living. It includes apartments, co-ops, multi-
family properties, single-family homes, townhouses, and vacation homes. A residential property is
considered an investment property, when it is rented out because it brings in cash flow through
monthly rent while building equity as the property appreciates.

Note that multifamily properties are considered residential, only if they contain four units or less. If
there are more than four units, then the property is considered commercial.

Commercial.

Investments in commercial real estate are among the most popular among real estate investors.
Commercial property is any property designed specifically to generate income. Among the different
types of commercial properties, you will find.

hotels.

Hotels offer a unique prospect because room rates can be adjusted to meet market demands.
Remember that the economy—especially during a recession can greatly affect the hotel industry,
minimizing your return on investment.
Mobile home parks. When it comes to commercial real estate types, mobile home parks are often
overlooked, but they can be profitable. After buying the land, you rent the individual plots to mobile
home residents. Because you only rent the space and not the apartment units, operating costs, and
repairs tend to be minimal, as well as tenant turnover.

Multi-family properties. When listed as commercial, these properties include four or more
residential units, and can range from an apartment or duplex to a condominium or townhouse.

Office properties. It could be a single-tenant non-residential property, a multi-tenant office building,

or even a skyscraper.

Business premises. These could include something as large as a shopping center or something
smaller and freestanding such as a gas station or restaurant.

Self-storage facility. This type of property rents space to tenants, from containers and cabinets to
rooms or even outdoor spaces designed for boats or caravans, on a long-term or monthly basis.

Land.

There are two main categories of land type. brownfield and greenfield. Either one may include
vacant land, which is land that has no established buildings or facilities. Vacant land can be used for
commercial or residential, real estate development, or as agricultural land, ranches, or natural
resources, including air rights, minerals, or water. Here are the two most common types of land.

Brownfield. A brownfield is a land that has previously been developed, and must be cleared before it
can be used again. Even if the land is vacant, there are special survey requirements for land that
previously had buildings.

Green field. Green meadow is land that has not been used before. It is considered the easiest to
develop and is often used for agricultural purposes.

What are property classes?

Property classes are divided up into three classifications, Class A, B, or C. Real estate agents, brokers,
investors, and lenders created these classifications as a quick way to assess and communicate about
a property’s quality. For investors, the classes can help indicate different levels of risk and return on
investment. Investors can use this information, to decide what properties are compatible with their
investment strategy.

The assignment of letter grades is made of a combination of factors, including property age and
location, income levels of tenants, amenities, appreciation, rental income, and more.

Class A.

While there is no exact formula, class properties are commonly known as well-located buildings of
the highest quality in their housing market. They are generally newer, have the best amenities, and
are professionally managed. Their tenants earn a high income, and their buildings tend, to have
lower vacancy rates while demanding higher rent. They often have lower maintenance issues too.

Class B.

Class B properties are a step below Class A. They may be a bit older, their tenants have lower
incomes, and the buildings aren’t always professionally managed. Rental income is lower, while
maintenance issues may increase. Overall, these buildings are considered well-maintained, and they
are a value-add investment opportunity because, with improvements and renovations in common
areas, they can receive a property class upgrade.

Class C.

Class c properties are usually over ٢٠ years old, and aren’t located in ideal areas. They often require
renovations to update them. Therefore, in the market, these buildings have lower rental rates than
Class B and Class A properties.

Characteristics of real estate.

Property has seven characteristics that are either economic or physical. Economic properties of land
affect investment and market value of land, while physical properties relate to the land itself.

1. Economic Characteristics.

Scarcity: While most of the land on earth remains unused or uninhabited, the supply of land in a
given location or of a given quality is generally limited. For example, there is a finite number of high-
rise office buildings built or possible in downtown Chicago.

Improvements: Building improvements on one lot can affect the value and use of that lot. It can also
affect the property of neighbors and the community.

The permanence of investment.

The capital that is used to improve the property can be a large fixed investment. Moreover, the
return on such investments tends to be long-term and relatively stable, so it is a permanent
investment.

Location.
The property's location is the most important economic characteristic of the land. This is because
people prefer certain geographic areas over others, and these preferences will result in different
values for properties in different locations. For example, 1st floor, Imm El Pacha, 67 Rue Ibn
Khaldoun, Marrakech 40000, Morocco

2. Social Characteristics.

Immobility: While one can move dirt and soil, one can never change the location of the parcel.

Indestructibility.

Earth is also indestructible, and permanent, and its location never changes.

Uniqueness.

Although lots may be similar and homes, may even have the same design or layout, no two lots are
ever the same.

What are property classes?

Property classes are divided up into three classifications, Class A, B, or C. Real estate agents, brokers,
investors, and lenders created these classifications as a quick way to assess and communicate about
a property’s quality. For investors, the classes can help indicate different levels of risk and return on
investment. Investors can use this information, to decide what properties are compatible with their
investment strategy.

The assignment of letter grades is made of a combination of factors, including property age and
location, income levels of tenants, amenities, appreciation, rental income, and more.

Class A.

While there is no exact formula, class properties are commonly known as well-located buildings of
the highest quality in their housing market. They are generally newer, have the best amenities, and
are professionally managed. Their tenants earn a high income, and their buildings tend, to have
lower vacancy rates while demanding higher rent. They often have lower maintenance issues too.
Class B.

Class B properties are a step below Class A. They may be a bit older, their tenants have lower
incomes, and the buildings aren’t always professionally managed. Rental income is lower, while
maintenance issues may increase. Overall, these buildings are considered well-maintained, and they
are a value-add investment opportunity because, with improvements and renovations in common
areas, they can receive a property class upgrade.

Class C.

Class c properties are usually over ٢٠ years old, and aren’t located in ideal areas. They often require
renovations to update them. Therefore, in the market, these buildings have lower rental rates than
Class B and Class A properties.

Characteristics of real estate.

Property has seven characteristics that are either economic or physical. Economic properties of land
affect investment and market value of land, while physical properties relate to the land itself.

1. Economic Characteristics.

Scarcity: While most of the land on earth remains unused or uninhabited, the supply of land in a
given location or of a given quality is generally limited. For example, there is a finite number of high-
rise office buildings built or possible in downtown Chicago.

Improvements: Building improvements on one lot can affect the value and use of that lot. It can also
affect the property of neighbors and the community.

The permanence of investment.

The capital that is used to improve the property can be a large fixed investment. Moreover, the
return on such investments tends to be long-term and relatively stable, so it is a permanent
investment.

Location.

The property's location is the most important economic characteristic of the land. This is because
people prefer certain geographic areas over others, and these preferences will result in different
values for properties in different locations. For example, 1st floor, Imm El Pacha, 67 Rue Ibn
Khaldoun, Marrakech 40000, Morocco

2. Social Characteristics.

Immobility: While one can move dirt and soil, one can never change the location of the parcel.

Indestructibility.

Earth is also indestructible, and permanent, and its location never changes.
Uniqueness.

Although lots may be similar and homes, may even have the same design or layout, no two lots are
ever the same.

Real estate financing, mortgages, and property valuation methods.

A critical skill in real estate investing is real estate appraisal, or the ability to discern the value of your
property based on data. Even if two properties are similar in price or appearance, researching their
future potential can ensure you get more for your money.

A property appraisal assesses, what a property is actually worth over time using a number of
variables. The part that makes it tricky is the fact that costs and sales prices don't necessarily show
true value.

Cost simply refers to the gross expenses used to build a home. It doesn't take into account factors
like neighborhood, or curb appeal that affect a home's value. Price takes into account costs and
external factors such as demand, but is not a reliable measure of value either.

Imagine you are interested in buying a single-family home for around 220,000 dirhams. Is the house
really worth that much? Not necessarily. You may discover a crack in the foundation that would
change the home's value, even if it isn't reflected in the market price.

The best estimate of a property's value is fair market value. This is an opinion of what a property,
would sell for in a competitive real estate market, assuming both buyers and sellers are rational
actors and have the necessary information.

Formal appraisals help determine market value, but you can also do your own property valuation. To
get started, you'll need to gather some data.

Real Estate Appraisal Checklist for Real Estate Investors.

To understand what a property is worth, you need to know the market conditions and the property
itself.

Market conditions.

Think of market conditions as conceptual inputs—things, like demand or shortage of real estate.
Demand and supply will help you determine whether you're in a buyer's or seller's market. If many
people are buying homes in high demand, but there are few homes in high shortage, you are in a
seller's market, which will increase the value of your home. If fewer people are buying and many
homes are available, buyers have an advantage that can lower your home's value.

You want to predict how demand and supply may change over time to give you an idea of the
property's potential value.

Ownership.

Once you have a handle on your conceptual inputs, it's time to dive into the hard financials of your
property.

٣ potential sources of income and expenses.

Mortgage repayments. Note if this includes property tax and insurance.

Deposit. This varies by mortgage.

Rental income if any. If the property generates income, the rent is a regular source of cash flow. You
can also calculate the gross rental income by dividing the annual gross rental by the purchase price
of the property or the gross rental multiplier by dividing the purchase price by the gross annual
income from the property. Keep in mind that none of these metrics include expenses associated
with maintaining a rental property.

Capitalization rate.

Commonly used for commercial real estate, it estimates the rate of return on a real estate
investment. The capitalization rate is calculated by dividing the net operating income by the asset
value. Think of it as gross rental income, but with operating costs. Let's say you buy a ٥٠٠٠٠٠
dirhams apartment building, that generates ٦٠٠٠٠ dirhams in rent each year and costs ١٠٠٠٠
dirhams in maintenance and property taxes. The capitalization rate would be ٥٠٠٠٠ dirhams to ٥٠٠
٠٠٠ dirhams, which is 0.1 or 10 percent. Note that this value may change if tenants move out or
operating costs increase.

٣ Real estate valuation methods.

١. Approach to sales comparison.

If you are appraising a single-family home, you can begin to estimate market value by analyzing
three to five comparable properties. Make sure your listing includes homes, that are in the same
neighborhood, roughly the same size, and that have recently sold. These are called "comparable
sales" or "compensation." You may need to adjust the price of your compasses to more accurately
estimate the value of your property. For example, if the comp has a pool and the property in
question does not, you subtract the cost of the pool from the comp. Conversely, if the computer
needs repair, add the cost to the computer. This approach is almost identical to the comparative
market analysis methodology.

٢. Cost approach.

Best for non-revenue-generating properties such as schools, churches or hospitals, the cost
approach values the buildings and the land they stand on separately. It also assumes that a rational
buyer would not pay more for a property, than it would cost to build something similar.

Start by estimating the value of the land. Use the sales comparison method to estimate the value of
the lot if it was vacant and at its best. Remember that land cannot depreciate.

Now calculate the value of the building, itself using one of the following three methods.

Square Foot Method.

Multiply the cost per square foot of a building, that was recently sold by the square footage of the
property.

On-Site Unit Method.

Calculate the unit cost of each component to reproduce, the structure roof, floor, foundation, etc,
and add them all together.

Quantitative Survey Method.

This method compiles a list of materials, permits, and labor costs and then calculates a value based
on these variables. This requires a very detailed list of all the nails and boards, used to construct the
building.

Don't forget about depreciation. The land itself can never depreciate, but physical damage to, say, a
structure or a declining neighborhood can affect the overall value.

٣. Income approach.

Useful for properties that generate income, such as an apartment building, this calculation divides
the property's net operating income revenues, minus expenses by the capitalization rate, which is an
estimate of the income the property, will earn over time.

An accurate valuation of the property will be the basis of every transaction. Understanding how the
pieces of real estate appraisal fit together can put you one step ahead of other real estate investors
and first-time homeowners.
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٦ factors that drive real estate valuation.

As we discussed the most common valuation methods, in real estate, you may have noticed some
similarities between them. In particular, certain factors affect real estate valuation regardless of
which approach you take.

Factors affecting property value include.

Location.

Where a property is located is the most important factor, in its price and value. Some markets have
higher property prices due to limited supply and strong demand. You can't compare real estate
values in New York and Los Angeles to Dallas and Raleigh.

Market Conditions.

Every real estate market goes through temporary, ups and downs that can significantly affect real
estate values. A generally cheap market may experience price increases due to a shock and vice
versa.

Property Type.

Some property types have more value than others. For example, detached houses are more
expensive, than terraced houses because of the external walls and land around them.

Property Size.

Larger properties with more bedrooms, and bathrooms usually cost more.

Age and condition of the property.

Newer homes that are well-maintained are more valuable.

Home Improvements.

Any positive home repairs and improvements, increase the value of a residential property.
What is a mortgage?

A mortgage is a type of loan that is used to buy or maintain a house, land, or other type of real
estate. The borrower agrees to pay the lender over time, usually in a series of regular payments, that
are divided into principal and interest. The property then serves as collateral to secure the loan.

A borrower must apply for a mortgage, through their preferred lender and ensure, they meet several
requirements, including a minimum credit score and down payments. Mortgage applications go
through a rigorous underwriting process before they reach the closing stage. Types of mortgages
vary depending on the needs of the borrower, such as conventional loans and fixed-rate loans.

How mortgages work.

Individuals and businesses use mortgages to purchase real estate without paying the entire purchase
price upfront. The borrower repays the loan plus interest over a set number of years until they own
the property free and clear. Most traditional mortgages are fully amortized. This means that the
amount of the regular installment will remain the same, but with each installment, a different ratio
of principal and interest will be repaid over the life of the loan. Typical mortgage terms are for 30 or
15 years. Mortgages are also known as liens on property or claims on property. If the borrower
stops paying the mortgage, the lender can foreclose on the property.

For example, a homeowner mortgages their home to their lender, who then has title to the
property. This secures the lender's interest in the property should the buyer default on their
financial obligation. In the event of a foreclosure, the creditor can evict the resident, sell the
property, and use the proceeds from the sale to pay off the mortgage debt.

Types of mortgages.

Fixed-rate mortgages.

The standard type of mortgage is a fixed rate. With a fixed-rate mortgage, the interest rate remains
the same throughout the life of the loan, as do the borrower's monthly mortgage payments. A fixed-
rate mortgage is also called a traditional mortgage.

Adjustable Rate Mortgage.

With an adjustable-rate mortgage, the interest rate is fixed for an initial period, after which it may
change periodically based on prevailing interest rates. The initial interest rate is often lower than the
market rate, which can make a mortgage more affordable in the short term, but may make it less
affordable in the long term if the rate increases significantly.
Adjustable Rate Mortgage typically has limits, or caps on how much the interest rate, can increase
each time it adjusts and overall over the life of the loan.

Interest-only loans.

Other, less common types of mortgages, such as interest-only mortgages and pay-as-you-go
Adjustable Rate Mortgage, can involve complex payment schedules and are best used by
sophisticated borrowers. These types of loans can have a large balloon payment at the end. Many
homeowners got into financial trouble with these types of mortgages during the housing bubble of
the early ٢٠٠٠.

Reverse mortgages.

As their name suggests, reverse mortgages are a very different financial product. They are designed
for homeowners aged ٦٢ or older who want to turn some of the equity in their homes into cash.
These homeowners can borrow against the value of their home and receive the money as a lump
sum, a fixed monthly payment, or a line of credit. The entire loan balance becomes due when the
borrower dies, moves permanently, or sells the home.