Can a deed of trust be executed in California?

While many Californians have executed Deeds of Trusts on their homes or real estate investments when buying property, few fully understand precisely what they are. There is a vague feeling that they are akin to mortgages and secure loans to purchase property.

How does a deed of trust work for real estate?

transfer the ownership of real property, as the typical deed does. Like a mortgage, a trust deed makes a piece of real property security (collateral) for a loan. If the loan is not repaid on time, the lender can foreclose on and sell the property and use the proceeds to pay off the loan.

When did property ownership and deed recording California start?

Property Ownership and Deed Recording California was admitted to the Union by the United States on September 9, 1850. One of the first acts of the California Legislature was to adopt a recording system by which evidence of title or interests in the title could be collected and maintained in a convenient and safe public place.

Where is the deed of trust and promissory note?

note shall be secured by a deed of trust to real property commonly known as 357 Oak Ave., Elk Grove, CA 95822, owned by Bob and Betty Borrower, as Joint Tenants, executed on January 13, 2012, at Sacramento, CA, and recorded on in the records of Sacramento County, California.

When to use a deed of trust in California?

It is the deed that shows that the lender has an interest in the property while the landowner is paying the mortgage. A short form deed of trust for use in typically smaller and non-institutional loans secured by any type of real property (commercial and residential) located in California.

Who is the trustee of a trust deed?

A trust deed gives the third-party “trustee” (usually a title company or real estate broker) legal ownership of the property. This means that the trustee has no control over the property as long as the borrower (aka property owner or “trustor”) makes the agreed-upon loan payments and keeps the other promises in the trust deed.

How does a deed of record in California work?

Go to the county page for specific information. In California, every conveyance of real property or an estate for years that has been acknowledged or proved, certified, and recorded is constructive notice to subsequent purchasers and mortgagees from the time it is filed for record.

Can a promissory note be used with a trust deed?

A trust deed is always used together with a promissory note that sets out the amount and terms of the loan. The property owner signs the note, which is a written promise to repay the borrowed money. A trust deed gives the third-party “trustee” (usually a title company or real estate broker) legal ownership of the property.