Define That Term #246

Sunday's term was remainder, which is defined as:

n. in real property law, the interest in real property that is left after another interest in the property ends, such as full title after a life estate (the right to use the property until one dies). A remainder must be created by a deed or will. Example: Patricia Parent deeds Happy Acres Ranch to her sister Sally for life and upon Sally's death to Charla Childers, Sally's daughter, or Charla's children if she does not survive. Charla has a remainder, and her children have a "contingent remainder," which they will receive if Charla dies before title passes. A remainder is distinguished from a "reversion," which gives title back to the grantor of the property (upon Sally's death, in the example) or to the grantor's descendants; a reversion need not be spelled out in a deed or will, but can occur automatically by "operation of law."

Edward Wiest's guess was close enough!

Today's term is:

deficiency judgment.

As always, no dictionaries, please.

Comments

[Edward Wiest]

I'm not what I used to be (and practice and procedure differ from state to state anyway) but I believe that a deficiency judgment may be entered for that portion of a secured debt which is not repaid from the proceeds of the sale of the property that secured the loan (thus, such a judgment may be entered for the shortfall between the net amount recovered at a foreclosure sale and the outstanding mortgage debt, subject to the provisions of the governing instruments and applicable state law).

Did I fall short on this one?