US 2004/0177033 A1 · Conditional fee ownership home financing system and business method

Abstract

A method and system for financing the purchase of real property or refinancing real property utilizing a conditional fee simple deed. Under this method a conditional fee purchaser and a conditional remainder purchaser enter into a conditional fee agreement, delineating the rights and responsibilities of each party with regards to the purchase or refinance of a residential property. The agreement includes a determination date, at which time, the conditional remainder purchaser will either receive the entire fee simple interest in the property or will receive a lump sum payment from the conditional fee purchaser for the conditional remainder purchaser's interest in the real property. The conditional fee agreement includes a list of conditions under which the property will pass directly to the conditional remainder purchaser prior to the determination date.

Claims23

Dependent claims

A method for refinancing a real estate transaction for a real property comprising:

(a) executing a conditional fee agreement with regards to refinancing a note on the real property, between a conditional fee purchaser and a conditional remainder purchaser, said conditional fee agreement having a determination date;
(b) executing a refinancing contract between said conditional fee purchaser and said conditional remainder purchaser, and a lender for the real property;
(c) providing payment to the noteholder for the real property by the lender;
and,
(d) transferring a fee simple interest in the real property to said conditional fee purchaser, said fee simple interest for a predetermined time, subject to the conditions of said agreement between said conditional fee purchaser and said conditional remainder purchaser.

2 more elements

A method for refinancing a real estate transaction between a conditional fee purchaser and a conditional remainder purchaser, said method comprising:

(a) storing in a computer system information relating to said conditional fee purchaser, said conditional remainder purchaser, and said real estate transaction;
(b) negotiating and executing a conditional fee agreement with regards to refinancing real property between said conditional fee purchaser and said conditional remainder purchaser, said conditional fee agreement having a determination date;
(c) storing information in the computer system relating to said conditional fee agreement;
(d) executing a refinancing contract between said conditional fee purchaser, said conditional remainder purchaser, and a lender for the real property;
(e) payment of 30%-35% of the fair market value of the real property by said conditional fee purchaser;
(f) payment of 68%-73% of the fair market value of the real property by said conditional remainder purchaser;
(g) recording of the deed containing conditional fee language, after all closing requirements are met;
and,
(h) receipt by said conditional remainder purchaser on said determination date of either a fee simple interest in the real property, or a payment for said conditional remainder purchaser's share of said fee simple interest by said conditional fee purchaser.

6 more elements

A method for investing in real property, wherein said investor is a conditional remainder purchaser, said method comprising said conditional remainder purchaser:

(a) identifying a third party who wishes to refinance a piece of real property, said third party to be known as a conditional fee purchaser;
(b) negotiating and executing a conditional fee agreement with said conditional fee purchaser, said conditional fee agreement having a determination date;
(c) executing a refinancing contract between said conditional remainder purchaser, said conditional fee purchaser, and a lender for the real property;
(d) ensuring a deed containing conditional fee language agreed to in said conditional fee agreement is recorded by the lender, after all closing requirements are met;
and,
(e) receiving on said determination date either a fee simple interest in the real property from said conditional fee purchaser, or a payment for said conditional remainder purchaser's share of said fee simple interest by said conditional fee purchaser.

3 more elements

A method for refinancing real property, wherein a homeowner is a conditional fee purchaser, said method comprising said conditional fee purchaser:

(a) identifying a third party who wishes to invest in real property, said third party to be known as a conditional remainder purchaser;
(b) negotiating and executing a conditional fee agreement with said conditional remainder purchaser, said conditional fee agreement having a determination date;
(c) executing a refinancing contract between said conditional fee purchaser, said conditional remainder purchaser, and a lender for refinancing a note on the real property;
(d) ensuring a deed containing conditional fee language agreed to in said conditional fee agreement is recorded by the lender, after all closing requirements are met;
and,
(e) on said determination date, either giving a fee simple interest in the real property to said conditional remainder purchaser, or paying said conditional remainder purchaser for said conditional remainder purchaser's share of said fee simple interest.

3 more elements

Dependencies are inferred from the claim text.

Conditional fee ownership home financing system and business method

Life of this patent

Conditional fee ownership home financing system and business method

Life of this patent

Abstract

Claims23