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Simple English definitions for legal terms

recognition clause

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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

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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