What is the purpose of a first trust deed?

A first trust deed established a mortgage lender’s right of ownership for your property in the event that you default on your loan.

What happens if you default on a first trust deed?

In the event you default on your mortgage loan, the first trust deed ensures your lender’s priority during a foreclosure action, effectively eliminating all other junior liens that may exist. A first trust deed established a mortgage lender’s right of ownership for your property in the event that you default on your loan.

How can I find out who has a trust deed against my home?

Once your lender’s trust deed is recorded against your property, its lien will appear in the public real property records until such time as the trustee conveys your property back to you. In the event you decide to take out a home equity loan, a title search will be done to determine who has an existing trust deed against your home.

Who is responsible for recording a trust deed?

Trustees are frequently title companies, whose roles and responsibilities under the trust deed include holding your property in trust as security for your loan, and facilitating the recording of the trust deed in the public real property records where your home is located. The recording of the trust deed perfects your lender’s senior lien status.

When do you need a first trust deed?

When a mortgage lender extends you the money to purchase your home, it requires a security interest in your property that takes priority over all others. To secure its seniority, it obtains a first trust deed on your property. In the event you default on your mortgage loan, the first trust deed ensures your lender’s…

How does a deed of trust work in real estate?

Contracts, not loans: Neither document serves as the actual loan agreement; a deed of trust or mortgage is a contract that places a lien on your property and dictates how your lender can repossess the property through foreclosure.

What is a Master Deed in a condominium?

Master Deed: This is the legal instrument that transfers property to condominium ownership and describes: Each is different but follows a familiar pattern according to the powers of the statute. 2. Unit Deed: The individual Unit Deed is the document that provides the unit buyer with the following basic rights and obligations:

What do you need to file a condominium declaration of trust?

Along with the master deed and unit deed, the condominium declaration of trust and bylaws must also be filed. The purpose of the declaration is to form a condominium association and to set forth the rules and procedures necessary for the governance of the condominium owner’s association.