Services & Terminology
Deeds and Documents
This is the document prepared when there is a loan against real estate, the security for your loan. This document is recorded in the public records. A Deed of Trust contains three parties: Trustor, which is you, the borrower, Trustee, which is an entity that holds legal title, and the Beneficiary, which is the lender.
Deeds of Trust contain a Trustee, an independent third party that does not represent the borrower or the lender. The Trustee is an entity, generally a title company, which holds the “Power of Sale” in the event of default. The Trustee also reconveys the property once the Deed of Trust is paid in full.
While the Deed of Trust is security of the debt, secured by the property, the Promissory Note is secured by the Deed of Trust and is the evidence of the debt. The Promissory Note is a promise to pay, signed by the borrower in favor of the lender. During the term of the loan, the lender retains the Promissory Note.
Deeds are legal instruments that are used to assign ownership of real property. Words used to convey property transfer may be grant, assign, conveyor warrant, but they basically all do the same thing, they transfer the interest of the person selling the property to the person buying the property. The person selling the property is the Grantor. The person buying the property is the Grantee.
Warranty Deeds contain three guarantees: the grantor states that the property has not been sold to anybody else, the grantor states that the property is not burdened by any encumbrances apart from those the seller has already told the buyer about, more important, the grantor will guarantee that the title is free of any defects.
Warranty Deeds contain three guarantees: the grantor states that the property has not been sold to anybody else, the grantor states that the property is not burdened by any encumbrances apart from those the seller has already told the buyer about, more important, the grantor will guarantee that the title is free of any defects.
A conveyance is the transfer of ownership. This is seen in Warranty Deeds where ownership of property is conveyed from the grantor to the grantee.
This is one of the ways to own property, by two or more individuals. Sometimes it is referred to as Tenancy in Common. There is no limit to the number of individuals who can hold title to one piece of real estate.
Joint Tenancy requires four unities. Unlike Tenants in Common, Joint Tenancy involves right of survivorship, meaning the interest held by each tenant will pass to the other upon death. The four unities necessary to create Joint Tenancy are: Time, each owner must receive title at the same time. Title, each owner must receive title on the same document evidencing title, Interest, each owner receives the same proportionate share of ownership, Possession, each owner has the same right of possession. If one of the joint tenants sells or conveys the interest created in a Joint Tenancy to another person, the Joint Tenancy is broken, and a Tenancy in Common is created.
