Deed of Trust Chapter 10

Deed of trust

A document that convey's legal title to a neautral third party(a trustee) as security for a debt.

Reconveyance or release deed

A document used to reconvey title from the trustee back to the property owner once the debt has been paid.

Assignment of rents-Deed of Trust Doc.

Establishes the lender's right to take possession and collect rents in the event of a loan default.

Trustee -Third Neutral Party

One Who holds property in trust for another.

The Beneficiary The Lender

One for whose benefit a trust is created; the lender in a deed of trust arrangement.

Trustor (Grantor) The Borrower

One who creates a trust; the borrower in a deed of trust arrangement.

Naked or Bare Title

Title that lacks the rights and privileges usually associated with ownership.

Power of sale clause-in deed of trust doc.

if the borrower defaults, the trustee has the right to foreclose and sell the property and convery ownership to the purchaser.

Public Trustee

role of trustee is performed by government official.

Accepted form

the trustee is notified in advance and either accepts or reject the appointment.

Automatic form of trusteeship

-Ex, not telling aunt diane. -Trustee is named in the deed of trust but is not personally notified of the appointment.