Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

recognition clause

Read a random definition: ex capite interdictionis

A quick definition of recognition clause:

A recognition clause is a part of a real estate agreement that protects buyers of individual lots in a development if the developer fails to pay their mortgage. This clause is usually found in a blanket mortgage or a contract for deed. It ensures that buyers are not negatively affected by the developer's financial troubles.

A more thorough explanation:

A recognition clause is a provision in a real estate contract that protects the buyers of individual lots in a subdivision if the developer defaults on the mortgage. This clause is usually found in a blanket mortgage or a contract for deed.

Suppose a developer buys a large tract of land and subdivides it into individual lots. The developer takes out a blanket mortgage to finance the project. The recognition clause in the mortgage agreement ensures that if the developer defaults on the mortgage, the individual lot buyers will not lose their properties.

For instance, if the developer fails to make payments on the mortgage, the lender cannot foreclose on the individual lots. Instead, the recognition clause allows the lot buyers to continue making payments on their properties and eventually obtain clear title to them.

Another example of a recognition clause is in a contract for deed. In this case, the recognition clause protects the buyer who is purchasing the property from the seller. If the seller defaults on the mortgage, the recognition clause ensures that the buyer's interest in the property is recognized and protected.

Overall, the recognition clause is an important provision in real estate contracts that provides protection for buyers in the event of a default by the developer or seller.

recognition | recognition picketing

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
LSD+ is ad-free, with DMs, discounts, case briefs & more.