This Deed of Trust is an agreement under which a debtor (or borrower) conveys the
right of ownership of his or her real property to a trustee (often a title company) as a
security for the sum advanced by a lender. If the borrower defaults on the payment of
the debt, the trustee is empowered by the deed to sell the property and pay the lender
the proceeds to satisfy the debt. The deed of trust is the document that is recorded in
the public records. This document should be used by a borrower or lender in the
financing of real estate transactions.
DEED OF TRUST
This Deed of Trust (“Deed of Trust”) is hereby made and entered into on this _____ day
of _______, 2_____ by and between __________________ (“Borrower”) and _______________
WHEREAS, Borrower is indebted to ____________________ (“Lender”) in the principal
sum of _________________ dollars ($___________) (the “Loan”); and
WHEREAS, it has been agreed between the Borrower and the Lender that the Loan shall
and will be secured by the conveyance of the real property municipally known as
________________ (the “Property”);
NOW, THEREFORE, in consideration of the premises and for the consideration of
__________ dollars ($_______) paid by Trustee to Borrower, the receipt of which is hereby
acknowledged, Borrower hereby sells and transfers to Trustee the Property on the following
terms and conditions:
TERMS AND CONDITIONS
1. Borrower hereby acknowledges and agrees that it shall keep the Property in a good state
of repair and shall comply with all laws of the applicable jurisdiction in respect to the Property.
2. Borrower hereby agrees that it shall pay any and all taxes that are due and owing or that
may become due and owing in respect of the said Property. In the event Borrower fails to pay
any and all taxes that are due and owing, Lender shall have the option to pay the amounts
outstanding in respect of taxes for the said Property and any amounts paid by Lender in respect
of taxes for the said Property shall be added to the principal amount of the Loan.
3. Borrower hereby represents and warrants to Trustee that Borrower owns the Property free
and clear of all liens and encumbrances and that Borrower has the full right and power to transfer
4. Borrower and Trustee hereby covenant and agree that in the event Trustee dies or
becomes incapacitated and unable to act as Trustee for any reason whatsoever, Lender shall have
the full right and authority to appoint a substitute Trustee, and such substitute Trustee shall have
all of the rights, powers, and authority as if such substitute Trustee was the original appointed
5. In the event Trustee should be named as a party to any legal proceeding, Trustee shall
have the right and authority to retain an attorney for representation for such legal proceeding.
Lender shall pay any and all reasonable attorney fees for legal representation in respect of such
legal proceeding and the costs of such legal representation shall be added to the Loan and be
secured under this Deed of Trust.
6. This Deed of Trust shall not be subordinated to any other debts, liens, or encumbrances of
any third party without the prior written consent of Lender.
7. Borrower hereby agrees that Lender shall have the right at any time, with reasonable
notice to Borrower, to inspect the Property.
8. No sale of the Property and no forbearance on the part of the Lender and no extension of
the time for the repayment of the debt secured hereby given by the Lender shall operate to
release, discharge, modify, change, or affect the original liability of the Borrower either in whole
or in part. The Lender can, in its complete discretion, waive any default, and can waive by
written instrument, in advance, any individual action which might constitute a default.
9. In the event Borrower is in default of the Loan, Lender shall have the right to
immediately demand payment in full of the Loan secured by this Deed of Trust.
10. Any notice required or permitted to be given hereunder may be effectively given by letter
delivered either by personal delivery, registered mail, or by electronic means, addressed to the
recipient as follows:
In the case of Borrower:
In the case of Trustee:
In the case of Lender:
Any such notice shall be mailed by ordinary mail, postage prepaid, or delivered to that address; and,
if mailed as aforesaid, any such notice shall have been deemed to have been given on the ____
(____) business day following that on which the letter conta