Deed of Trust

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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.

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									Real Estate Deed of Trust
This Real Estate Deed of Trust is an agreement whereby a borrower under a real estate
loan conveys the title of the property to a neutral third party, the trustee, to ensure full
payment of the loan. Upon the full repayment of the loan, the trustee will re-convey the
property back to the borrower. However, if the borrower defaults on the loan, the trustee
may be forced to convey the property to the lender for foreclosure proceedings. This
document is ideal for individuals or small businesses that want to convey land to a
trustee.
                           REAL ESTATE 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 _______________
(“Trustee”).

                                           RECITALS

       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
the Property.

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
Trustee.

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 containing the notice was posted. If any
notice is given by electronic communication, such notice shall be deemed to be delivered on the day
of transmittal thereof if given during the normal business hours of the recipient and on the next
business day if given after normal business hours. Any Party may change its address for service
from time to time by notice given in accordance with the foregoing.

11.    Borrower hereby acknowledges and agrees that it shall maintain at all times, insurance on
the Property, in an amount that is not less than the amount of the outstanding Loan secured by
this Deed of Trust and shall name Lender as loss payee. Borrower hereby further acknowledges
and agrees that it shall maintain insurance in an adequate amount for any improvements made to



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the Property by Borrower. Borrower shall be solely liable and responsible for the payment of all
premiums that may become due and owing in respect of the insurance policy in place on the
Property and shall provide evidence of such insurance coverage to Lender.

12.    In the event Borrower files for bankruptcy pursuant to the bankruptcy laws of the
applicable jurisdiction, Lender shall have the option to declare all amounts owing to it by
Borrower immediately due and payable without prior notice to Borrower. Any and all attorney
fees and related costs and expenses incurred by Lender as a result of the filing of bankruptcy of
Borrower shall be deemed to be additional indebtedness of Borrower and shall be secured by this
Deed of Trust.

13.      Borrower hereby represents and warrants to Lender as follows:

         A.        Borrower shall keep the Property free and clear of any hazardous materials;

         B.        Borrower shall keep the Property in compliance with all environmental laws of
                   the applicable jurisdiction; and

         C.        Borrower shall keep the Property free and clear of any liens or encumbrances.


14.     Borrower hereby agrees to indemnify and hold Lender harmless from any loss, damage,
injury, and claims incurred by Lender, as a result of any representation or and warranty made by
Borrower being untrue or incorrect.

15.      This Deed of Trust shall be governed by the laws of the State of ____________.




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       IN WITNESS WHEREOF, the parties hereto have hereby executed this Deed of Trust on
the day and year first above written.




____________________________                                ___________________________________
Witness as to Borrower’s signature                          BORROWER

____________________________                                ___________________________________
Witness as to Lender’s signature                            LENDER

____________________________                                ___________________________________
Witness as to Trustee’s signature                           TRUSTEE




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