What is a first lien deed of trust?
To secure its seniority, it obtains a first trust deed on your property. In the event you default on your mortgage loan, the first trust deed ensures your lender’s priority during a foreclosure action, effectively eliminating all other junior liens that may exist.
Which states use deed of trust?
The following states use Deed of Trusts: Alaska, Arizona, California, District of Columbia, Georgia, Mississippi, Missouri, Nevada, North Carolina, and Virginia.
Who is the trustor in a deed of trust?
A Deed of Trust is a three party document prepared, signed and recorded to secure repayment of a loan. The Borrower (property owner) is named as “Trustor,” the Lender is called the “Beneficiary,” and a third party is called a “Trustee.”
How do I remove a deed of trust?
In order to clear the Deed of Trust from the title to the property, a Deed of Reconveyance must be recorded with the Country Recorder or Recorder of Deeds. If the Trustee/Beneficiary fails to record a satisfaction within the set time limits, the Trustee/Beneficiary may be responsible for damages as set out by statute.
Why do you need a deed of trust?
A deed of trust is needed when a traditional lending service (i.e., a bank) is not being used or when certain states require deeds of trust instead of mortgages. Whether you have a deed of trust or a mortgage, they both serve to assure that a loan is repaid, either to a lender or an individual person.
What makes a deed of trust invalid?
Giving the wrong legal address for the property or the wrong amount of the debt can render the deed unenforceable. In some cases, the error is easy to fix, and the court will rule the deed is enforceable.
Is a deed of trust legally binding?
A Declaration of Trust (also known as a Deed of Trust) is a legally binding document in which the legal owners of the property declare that they hold the property on trust for the beneficial owners and sets out the shares in which the beneficial interests are held.
Who keeps the original deed?
The original deed is returned to the owner of the property from the office of the recorder after proper entry. The office of the Recorder of Deeds maintains a set of indexes about each deed recorded, for an easy search. Almost all states have a grantor-grantee index including a reference to all documents recorded.
What happens if a deed of trust is not recorded?
An owner legally transfers his property to another person on an instrument known as a deed. However, failure to record a deed may cause problems for the new owner. For example, the lack of an official deed will make it nearly impossible to sell the property again or refinance a mortgage.
What does unrecorded plat mean?
Although such plats are usually recorded, an unrecorded plat is sufficient to describe property so long as it is clearly incorporated in the deed, and a copy of the plat can be found. The parcel number is the primary identification for a specific piece of real estate property in a particular county.