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Land or real property is an expensive asset that is often purchased through financing arrangements. As such, purchases of real property are often subject to a security interest. The most common forms of security interest in land include: Mortgages, Deeds of Trust, Land Sales Contracts. Each of these arrangements demonstrates the core principle of security interests. That is, there is an obligation (generally to make payments) that is secured by an interest in the real property. Each of these types of security interest is discussed in greater detail below. For further written and video explanation, discussion and practice questions, see What are the common types of security interest in real property (land)?
In certain types of transactions, a secured party’s interest in collateral is automatically perfected without filing a financing statement and without taking possession or control of the collateral. This is known as “automatic perfection”. Depending upon the nature of the collateral, automatic perfection may be permanent or only last for a temporary period. Temporary automatic perfect allows a party a window of time to undertake procedures to permanently perfect the security interest. Below are the most common types of automatically perfected security interest: Purchase Money Security Interests in Consumer Goods, Purchase Money Security Interests in Non-Consumer Goods, Perfection in Proceeds from the Sale of Goods, and Assignments of Accounts Receivable and Contract Rights. Each of these types of security interests and the automatic perfection attributes are discussed in a separate lecture. For further written and video explanation, discussion and practice questions, see What is "automatic perfection" of a security interest?
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