Late Payment Clause-Allows the lender to charge a penalty for payments that are not made by the agreed- upon due date.

No deed or title is transferred until all, or a specified portion of, payments have been made.

Land Contract or Installment Sales Agreement-A real estate installment agreement under which the buyer makes payment to the seller in exchange for the right to occupy and use the property.

There are two types of real estate finance documents: A financing instrument, typically a promissory note, and an accompanying security instrument, such as a mortgage or deed of trust.

Instrument-A written legal document that establishes the different rights and duties of the parties involved.

An example of a holder in due course would be an entity such as Xxxxxx Xxx purchasing a note from a lender as an investment at a fair price when there is no indication of irregularity in the note. Holder in Due Course. One who acquires a negotiable instrument in good faith and for consideration and has certain rights beyond those of the original payee.

Holder and holder in due course