A "Deed of Trust" is a legal instrument that
grants a Lender a Security Interest in real estate. The Security Interest creates a lien on the
property on behalf of the Lender and gives the Lender the right to foreclose on
the property should the Grantor of the Deed of Trust fail to satisfy the terms
of the loan. A Deed of Trust and a
Mortgage are similar in the rights they grant the Lender.
Monday
Deed of Release
A Deed of Release (also known as a Deed of Reconveyance) is a legal
instrument executed by a lien holder (Lender) to release a lien on real
property. A Lender holding a lien on real property in the form of a Mortgage or
Deed of Trust must execute a Deed of Release once the Lender has been paid in
full by the Grantor of the Deed of Trust. In most states, Lenders are required
to execute a Deed of Release within a certain time period after the loan is
paid off.
Friday
General Warranty Deed
When a Grantor executes a "Special Deed" or
"Special Warranty Deed," he or she is only warranting that they own
the property and that no title defects arose during the time they owned the
property. A Special Warranty Deed provides more protection than a quit claim deed, but less than a General Warranty Deed. A General Warranty Deed warrants title to the property from the beginning of time.
Why Use a Special Warranty Deed?
Special Warranty Deeds are most often used in Commercial
Real Estate Transactions. This is so
because often the owner of Commercial Real Estate is less intimately connected
to the property and less willing to warrant against things that happened before
they become owner of the property.
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