Property Ownership
In Louisiana, a 'dation en paiement' (giving in payment) used to resolve a mortgage default means the borrower:
AMakes a large lump sum payment to reduce the mortgage
BTransfers ownership of the mortgaged property to the creditor/lender in full satisfaction of the outstanding debt, avoiding foreclosure✓ Correct
CGives the property to a family member to avoid foreclosure
DPays additional interest to extend the mortgage term
Explanation
A dation en paiement is a Louisiana Civil Law mechanism where a debtor transfers property to a creditor as payment in kind for an outstanding debt — equivalent to a deed in lieu of foreclosure. It extinguishes the debt and avoids the formal foreclosure process.
Related Louisiana Property Ownership Questions
- In Louisiana, a 'building restriction line' (setback line) shown on a subdivision plat represents:
- The Louisiana Homestead Exemption constitutional provision (Art. VII, Sec. 20) exempts from taxation the first $7,500 of assessed value. If the homestead is worth $250,000 and assessed at 10%, the tax exemption saves the homeowner:
- In Louisiana, a 'forced heir' is a child who has a legal right to:
- In Louisiana, when a married person dies leaving a surviving spouse and separate property, the separate property passes according to:
- In Louisiana, which type of ownership form is commonly used for commercial real estate investment where owners want liability protection and pass-through taxation?
- In Louisiana, which document formally transfers ownership of immovable property from seller to buyer?
- In Louisiana, a 'right of first refusal' in a real estate transaction means:
- In Louisiana, a landowner who builds a fence that encroaches on a neighbor's property has created what type of issue?
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →