Recording a deed can also protect a property owner against future claims that his property rights are invalid.A grant deed is used to transfer real estate ownership from one person to another.Joe Stone is a freelance writer in California who has been writing professionally since 2005. Stone received his law degree from Southwestern University School of Law and a Bachelor of Arts in philosophy from California State University, Los Angeles.
Recording a deed can also protect a property owner against future claims that his property rights are invalid.Tags: Child Abuse Articles Research PaperFunniest Essay AnalogiesLook For A Pattern Problem Solving StrategyCharacteristic Personal EssayTowrite A ThesisColleges For WritersBoutique Business PlanElements Of Design Essay
Deed of trust with assignment of rent gives the lender the right to automatically start collecting rent generated by property if the borrower defaults on the loan payments.
Another important element of the trust deed is that it names the trustee who takes legal title to the property.
The title to the property is held by the trustee who is the third party to the trust deed. He does not represent the interest of the mortgage lender or the borrower. The trustee has the legal authority to transfer the property to the borrower after the loan is paid in full.
This is accomplished by recording in the county public records a document called a Deed of Release.
This aspect makes existing loans secured by a deed of trust suitable for sale from the original lender to another lender during the life of the loan.
To complete the sale of a loan secured by a deed of trust, the original lender uses a document called an assignment of deed of trust to transfer its rights in the deed of trust to a new lender. He also has experience in background investigations and spent almost two decades in legal practice.However, a grant deed may also be used to transfer ownership as a gift.When a grant deed is used, the person transferring ownership rights is promising to the person receiving ownership rights that these rights have not been previously transferred to anyone else.The deed of trust contains the legal description of the property and the terms of the loan, such as the interest rate, loan amount and term.It also identifies the borrower and lender, as well as the legal provisions that explain the rights and responsibilities of each party to the agreement, including trustor obligations, beneficiary rights and trustee duties.A deed of trust is used in a three-party transaction involving the repayment of a debt.The first party is a real estate owner or buyer who is borrowing money that can be used for any purpose, but is typically used to fund the purchase of the real estate.The trustee also has the power, granted by a Power of Sale clause contained in most deed of trust agreements, to foreclose on the property if the borrower defaults on the loan payment.Proceeds from the foreclosure sale will be applied toward the delinquent loan amount.Lenders have added protection in the event the borrower becomes delinquent on the loan payments.The assignment of rent, which is included in most mortgages and deed of trust with assignment of rent, gives the beneficiary the legal power and authority to collect rent, other income and profits that are generated by the property.