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Assignment of Deed of Trust Vs. Deed or Grant Deed

A grant deed is used to transfer ownership rights in real estate.

A grant deed is used to transfer ownership rights in real estate.

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  •   1. What Is the Difference Between the Deed of Absolute Sale and the Deed of Assignment?
  •   2. What is an Assignment of Trust Deed?
  •   3. Warranty Deed Vs. Deed of Trust

Property rights in real estate are valuable and invariably the subject of a legal document called a deed. To transfer ownership rights in real estate, a grant deed is commonly used. When a loan is obtained to purchase real estate, a deed of trust is often used to give the lender rights in the real estate to secure repayment of the loan. An assignment of deed of trust is used by a lender when it sells its loan secured by a deed of trust.

Property Deeds

Real estate transactions that involve the transfer of property rights require a deed to ensure the transfer of rights is effective. All deeds are written documents that include a description of the affected real estate and the names of the persons whose property rights are being transferred. Although not legally require to make the transfer effective, deeds are routinely recorded with the local government office responsible for recording real estate transactions. A recorded deed gives the public notice regarding property rights in a particular parcel of real estate, such as ownership, easements and liens. Recording a deed can also protect a property owner against future claims that his property rights are invalid.

A grant deed is used to transfer real estate ownership from one person to another. The transfer of ownership can be for a full parcel of real estate or just a portion of the real estate. Grant deeds are most often used in real estate sales between an unrelated buyer and seller. However, a grant deed may also be used to transfer ownership as a gift. When a grant deed is used, the person transferring ownership rights is promising to the person receiving ownership rights that these rights have not been previously transferred to anyone else.

Deed of Trust

A deed of trust is used in a three-party transaction involving the repayment of a debt. The first party is a real estate owner or buyer who is borrowing money that can be used for any purpose, but is typically used to fund the purchase of the real estate. The second party is the lender, such as a bank or other financial institution, providing the funds to the borrower. To secure repayment of the loan, the borrower signs a deed of trust which transfers legal title to his real estate to a third party, called the trustee, who can be any individual or company that does not have any interest in the loan or real estate. The borrower continues to have the beneficial use of the property with the trustee only taking action if the borrower defaults on his loan. If the lender and borrow cannot work out a resolution of the default, the lender can instruct the trustee to conduct a foreclosure sale of the real estate and deliver the sale proceeds to the lender to repay the loan.

Assignment of Deed of Trust

Loans that are secured by a deed of trust often include repayment terms that extend for several years or more. From a lender’s perspective, a loan secured by a deed of trust is a fairly safe investment when the value of the real estate is sufficient to repay the loan in the event of a borrower's default. This aspect makes existing loans secured by a deed of trust suitable for sale from the original lender to another lender during the life of the loan. To complete the sale of a loan secured by a deed of trust, the original lender uses a document called an assignment of deed of trust to transfer its rights in the deed of trust to a new lender.

  • FindLaw: What Are Property Deeds?
  • Cornell University Law School Legal Information Institute: Deed of Trust
  • California Department of Real Estate: Trust Deed Investments -- What You Should Know?

Joe Stone is a freelance writer in California who has been writing professionally since 2005. His articles have been published on LIVESTRONG.COM, SFgate.com and Chron.com. He also has experience in background investigations and spent almost two decades in legal practice. Stone received his law degree from Southwestern University School of Law and a Bachelor of Arts in philosophy from California State University, Los Angeles.

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A Deed of Trust can be Assigned Apart from the Note, and that often occurs just before a foreclosure. But What Does That Mean? Not Much, the Deed of Trust is Inseparable from the Note

Notes and Deeds of Trust are often assigned to different parties. The question posed is what happens if the Deed of Trust alone is assigned ? A typical assignment of the Deed of Trust alone will purport to assign “all beneficial interest under that certain Deed of Trust dated xyz..” But the long-established law in California is clear: the beneficial interest under a Deed of Trust is held by the party who holds the Note (or is entitled to enforce it), without regard to the assignment of the Deed of Trust .

Sacramento-Deed-of-Trust-Lawyer

The subject was again addressed by the California Courts in Domarad v. Fisher & Burke, Inc. (1969) 270 Cal. App. 2d 543 ). The Court noted that a deed of trust is a mere incident of the debt it secures and that an assignment of the debt carries with it the security. “The deed of trust is inseparable from the debt and always abides with the debt, and it has no market or ascertainable value, apart from the obligation it secures and that a deed of trust has no assignable quality independent of the debt, it may not be assigned or transferred apart from the debt, and an attempt to assign the deed of trust without a transfer of the debt is without effect. (emph. added)”

Sacramento-Deed-of-Trust-assignment-attorney

In Stockwell v. Barnum ((1908) 7 Cal. App. 413) the Court stated that this Code “is wholly foreign to deeds of trust, which, instead of creating a lien only, as in the case of a mortgage, passes the legal title to the trustee, thus enabling him in executing the trust to transfer to the purchaser a marketable record title. It is immaterial who holds the note. The transferee of a negotiable promissory note, payment of which is secured by a deed of trust whereby the title to the property and power of sale in case of default is vested in a third party as trustee, is not an incumbrancer to whom power of sale is given…” Stockwell @ 417.

And more recently “it has been established since 1908 that this statutory requirement that an assignment of the beneficial interest in a debt secured by real property must be recorded in order for the assignee to exercise the power of sale applies only to a mortgage and not to a deed of trust.” ( Calvo v. HSBC Bank USA, N.A. (2011) 199 Cal.App.4th 118 , 122.)

Why is that? There is a technical difference between the two security instruments. The mortgage only involves two parties –the borrower who grants the power of sale to the lender, and the lender who then holds the beneficial interest in the mortgage plus the power of sale. A deed of trust, on the other hand, involves three parties: the borrower, the lender, and the trustee who is granted conditional title to the encumbered property as well as the power of sale.

Sacramento-Deed-of-Trust-attorney

Thus, the deed of trust may thus be assigned one or multiple times over the life of the loan it secures. But if the borrower defaults on the loan, only the current beneficiary may direct the trustee to undertake the nonjudicial foreclosure process. “[O]nly the ‘true owner’ or ‘beneficial holder’ of a Deed of Trust can bring to completion a nonjudicial foreclosure under California law.” Yvanova v. New Century Mortgage (62 Cal. 4th 919) (2016)

An Alternative The Commercial Code also provides a mechanism for recording an assignment of the security if there has been an off-record transfer of the note but no recorded assignment of the deed of trust or mortgage. The buyer of the note can record a copy of the transfer agreement whereby the note was acquired, together with a sworn statement that a default has occurred, and in that event may proceed with a nonjudicial foreclosure. ( Cal. Com. Code, § 9607, subd. (b))

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Legal Dictionary

The Law Dictionary for Everyone

Deed of Trust

A deed of trust is an agreement that is made between a lender and a borrower, to allow a neutral third party to act as a trustee over a piece of property. The trustee holds legal title to the property until the borrower can pay off his debt. As he repays the debt, the borrower keeps the actual title to (and possession of) the property, and maintains full responsibility over the premises, unless the deed of trust says otherwise. The legal title to the property, however, is held by the trustee. To explore this concept, consider the following deed of trust definition.

Definition of Deed of Trust

  • A document that secures a debt, in which a debtor places legal ownership of real property with a trustee, to be held in trust until the debt is repaid.

What is a Dead of Trust

A deed of trust is a legal document that a borrower and a lender agree to make, which permits a neutral third party to enter the fold as a trustee over a piece of real property. For example, the deed of trust permits the trustee to hold onto the property while the borrower repays his debt. During this time, the borrower keeps the actual title to the property, and remains fully responsible for the property. The trustee, on the other hand, holds on to the legal title.

Deeds of trust have become less popular as more people have opted for mortgages. One of the main differences between a deed of trust and a mortgage is that, with a mortgage, everyone involved in the transaction has a vested interest in the outcome of the arrangement. With a deed of trust, an impartial third party serves as trustee. For example, a deed of trust can only be sold by the trustee, who is not permitted to change the selling price to benefit either the borrower or lender.

Once the sale of a property under a deed of trust is finalized, the trustee distributes the proceeds to the lender, with the remainder to the borrower. The lender receives the amount necessary to fully satisfy the debt, and the borrower receives whatever is left over.

The term “trustee” refers to any person who is in a position of trust, responsibility, or authority for the benefit of another person. A trustee is “trusted” with another person’s property. Trustees may be responsible for carrying out certain tasks, but without the benefit of earning an income for their efforts. When it comes to real property, a trustee is a holder of the property, typically on behalf of a beneficiary . This means that the trustee holds the property for the beneficiary until the beneficiary is ready to take the property over.

Difference Between Deed of Trust and Mortgage

In order to better understand the difference between a deed of trust and a mortgage, it is important to first define promissory notes. A promissory note does as its name suggests: it contains a “promise” on the part of the borrower to repay the amount he is borrowing. A promissory note is essentially an IOU. Both mortgages and deeds of trust are considered promissory notes, and both use real property to secure the loan. This means that, if the borrower fails to make his monthly payments, the lender is permitted to foreclose on the property, based on the promise in the mortgage or deed of trust having been broken.

Many people believe that a mortgage is the loan that they take out on their property, but this is not actually true. The mortgage is the document that the borrower gives to the lender to allow the lender to place a lien on his property. If a property owner is unsure as to whether he has a mortgage or a deed of trust, the borrower can review the documents he received when the property was initially sold to him. The only time the difference between a deed of trust and a mortgage becomes an issue is if the property goes into foreclosure . This is because the foreclosure process is different for a property under deed of trust.

Foreclosure

Another difference between a deed of trust and a mortgage is the foreclosure process. A foreclosure is the sale of a piece of property by a lender when a borrower has failed to make his loan payments as agreed. The lender then sells the property to recoup what is owed so that the loan can be fully satisfied.

When a piece of property under a deed of trust goes into foreclosure, the foreclosure sale does not have to adhere to the same procedures that a foreclosure on a mortgaged property must heed. With a foreclosure on a mortgaged property, the rules are stricter, and the parties involved are held to a higher level of accountability. A foreclosure sale under a deed of trust, however, does not require court intervention in most states.

Power of Sale

A power of sale is a clause found in most deeds of trust that allow a trustee to sell the property if the borrower defaults on his loan, and the property goes into foreclosure. The courts have consistently held that a deed of trust with a power of sale clause effectively serves as the property owner’s permission for a trustee to conduct a nonjudicial foreclosure in the event that the borrower defaults on his payments. What this means is that the lender does not need to sue the borrower in state court. Instead, the lender instructs the trustee to mail or serve the required notices that the property will be auctioned off at a “trustee’s sale.”

Once the property is sold at the trustee’s sale, the borrower’s title is automatically terminated. The trustee then issues a deed transferring the legal title to the property to the highest bidder. The bidder then records that deed and becomes the new owner of record. This is why lenders prefer deeds of trust over mortgages. They can sell the property much more quickly, recovering the collateral of the loan without needing to incur the expenses that would be involved with suing the borrower.

The length of time that it takes to complete a trustee’s sale – or power of sale foreclosure – varies wildly, depending on the jurisdiction . Some states, like Virginia, have incredibly short time lines, Virginia’s being only two weeks. The process begins only when the lender or trustee records a notice of default, no matter how long the borrower has been in default on his payments. Poor economic conditions have also influenced states to extend the time in which to sell the property, understanding that it may take longer than usual to do so in a struggling economy.

Deed of Trust Form

For borrowers who wish to conduct their own real estate transactions, they can use a free deed of trust form, which can be found on the internet. They must file the completed and signed deed of trust form with the county clerk within the jurisdiction of their property. Filing the deed of trust form with the county clerk is crucial because the filing itself acts as a sort of notice to any interested parties that the property is being purchased under a deed of trust.

Assignment of Deed of Trust

An assignment of deed of trust transfers the interest that the original borrower had under the deed of trust to a new bank. Typically, the deed of trust is recorded shortly after the lender signs it. If further assignments of deed of trust are to follow, each must be recorded with the county clerk.

Lenders buy and sell loans all the time, with usually little to no effect on the borrower. The assignment of deed of trust simply serves as permission for one lender to sell the loan to another lender. Once the loan is re-assigned, the new lender takes over the same lien on the same piece of property, essentially stepping into the shoes of the prior lender. The borrower can be provided with a copy of the assignment of deed of trust upon repaying his debt in full.

Deed of Trust Example Concerning an Assignment of Deed of Trust

An example of a deed of trust action can be found in the case of Maria Mendoza v JPMorgan Chase Bank. In November of 2007, Maria and Juan Mendoza took out a loan in the amount of $540,600 from JPMorgan Chase Bank. The loan was secured by a deed of trust. In the loan, the Mendozas were listed as the borrowers, Chase as the lender and beneficiary, and North American Title Company as the trustee. Unfortunately, by March of 2011, the Mendozas had fallen behind on their payments – to the tune of nearly $55,000.

On March 4, 2011, Chase reassigned the deed of trust to Chase Home Finance, LLC. California Reconveyance Company then replaced North American Title Company as the trustee on the loan. California Reconveyance Company issued a notice to the Mendozas indicating their default on the loan and the trustee’s intention to sell the property. Maria Mendoza filed a lawsuit challenging the assignment of the deed of trust, as well as the substitution of California Reconveyance Company as trustee.

Mendoza’s argument was that Colleen Irby, who had signed the assignment as an officer of Chase, was actually an employee of California Reconveyance Company. Mendoza had gleaned this information from Irby’s LinkedIn.com page, where she identified herself as an employee of the latter. Mendoza therefore alleged that Irby acted fraudulently in performing the assignment. Mendoza accused Irby of being a “robo-signer,” which is someone who simply signs documents, with no legal authority whatsoever. Mendoza argued that the substitution of the trustee was equally fraudulent.

The defendants filed a motion to dismiss , which was ultimately granted by the trial court. Mendoza then appealed to California’s Court of Appeals for the Third District. The Court of Appeals ultimately affirmed the dismissal primarily because Mendoza failed to provide enough factual evidence in her complaint , and in her appeal . The court explained its decision, stating:

“We uphold the trial court’s ruling because plaintiff lacks standing to challenge the assignment of her loan and deed of trust. Plaintiff makes the rote assertion that if afforded the opportunity, she would provide more facts to coincide with the emerging jurisprudence . That promise does not meet her burden of disclosing in her briefing what new facts she can now state to revive her wrongful foreclosure claim. As a result, the trial court did not abuse its discretion by foreclosing additional amendments.”

The Court concluded by saying that:

“[Mendoza] offers no new factual allegations to merit an opportunity to further amend her complaint or to demonstrate that the trial court abused its discretion. She has had three opportunities to state a viable claim against these defendants and has fallen far short of the mark.”

Related Legal Terms and Issues

  • Collateral – Something of value pledged as security for repayment of a loan.
  • Defendant – A party against whom a lawsuit has been filed in civil court, or who has been accused of, or charged with, a crime or offense.
  • Lien – An encumbrance placed on a person’s property to secure a debt the property owner owes to another person or entity.
  • Promissory – Containing, implying, or having the nature of a promise.
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what is an assignment of a deed of trust

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Deed of Trust - What You Need to Know

A deed of trust is a valuable asset for securing a real estate loan. This article explains the difference between a deed of trust and a mortgage, and more.

Patrick Hicks

Patrick Hicks , @PatrickHicks

Head of Legal , Trust & Will

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A Deed of Trust is an agreement between a borrower, a lender and a third-party person who’s appointed as a Trustee. It’s used to secure real estate transactions where money needs to be borrowed in order for property to be purchased. A Deed of Trust can be thought of similarly to a mortgage, and some states use them instead of traditional mortgages. 

Here we’re discussing everything there is to know about Deeds of Trust, so you can be confident in your knowledge should you ever use one. Read on to gain a full understanding of what a Deed of Trust is, how and when to use one, how it actually compares to a mortgage and more.

What Is a Deed of Trust?

Why do you need a deed of trust, who are the parties in a deed of trust transaction, deed of trust vs mortgage - how do they differ , other common questions about deeds of trust.

A Deed of Trust is a legal document similar to a home mortgage. It guarantees a real estate transaction between a lender and a borrower. A Deed of Trust definition is most easily expressed as an agreement between a borrower, a lender and a third party known as the Trustee.   

Deeds of Trust work in a simple manner: a lender gives money to a borrower for a home purchase. In exchange, the lender receives a promissory note that guarantees the borrower will repay the loan amount. A Trustee holds the title during the loan period.   

A Deed of Trust can be an alternative in states that don’t use mortgages. It can also be used when a traditional bank or lender isn’t providing the money for the loan. Regardless of whether you have a mortgage, or a Deed of Trust, both are tools that guarantee a loan will be repaid to the person or lender you borrowed from. 

Deeds of Trust transactions will always involve three parties - there will be:

The Beneficiary "> Beneficiary (lender)

The Trustor (borrower) 

The Third Party Trustee (holds the legal title, often a title company) 

The Beneficiary of a Deed of Trust is the Lender, and the Deed serves to protect their investment.  

The Trustor is the borrower. While the legal title on the property is put into a Trust, as long as timely and consistent payments are made, the borrower has equitable title. This means borrowers can live and gain equity in the property even while they make payments on the loan.

The Trustee’s role is to hold the legal title on the property for as long as the borrower is making those payments. While serving as Trustee, they must remain impartial and not do anything to benefit either the Trustor or the Beneficiary. 

Deeds of Trust differ from mortgages in a few different ways. While both are a guarantee that a borrower repay a loan, mortgages only have two parties (the lender and the borrower). Deeds of Trust, as we’ve seen, have the additional Trustee party.

A primary difference between a mortgage and a Deed of Trust is how defaults on payments would be handled. In a traditional mortgage, if a borrower fails to make the promised payments on their loan, the lender would be responsible for initiating the process of foreclosing on the property. That process would be handled in court. By contrast, Deeds of Trust go through a process known as Nonjudicial foreclosure. 

Other differences include:

Mortgages are used in all states

Deeds of Trust are only available in certain states

Mortgages offer both the borrower and the lender equal interest in the property until the loan is completely paid off

Deeds of Trust give the legal title on the property to the Trustee 

While Deeds of Trust and Promissory Notes are related, a Promissory Note is a separate document that’s essentially a “promise” to pay the loan back. Promissory Notes are signed by the borrower, and they contain the details and terms of the loan, like payment schedules, interest rates and payment obligations. Legally, both a Deed of Trust and a mortgage can be considered specific types of promissory notes.

Despite being similar to the more well-known mortgage, many people often have questions about Deeds of Trust. Read on, as we explore some of the more common questions borrowers tend to have about this type of loan option.

Who is the Trustee in a Deed of Trust?

The Trustee in a Deed of Trust is the party who holds legal title to the property during the life of the loan. Trustees will most often have one of two jobs.

If the property is sold before the loan is paid off , the Trustee will use the proceeds from the sale to pay the lender any outstanding portion of the loan. The borrower is then paid any remaining proceeds.

If the loan is completely paid off (either before or at the end of the loan term) , the Trustee is responsible for dissolving the Trust and transferring the legal title over to the new owner (the borrower).

Is a Deed of Trust the Same as a Title?

Deed of Trust and Title are both terms you’ll likely hear when purchasing property, but they actually are different in purpose and meaning. A Deed of Trust is the loan on the property, and a Title expresses the actual ownership of a property. 

Can You Sell a House with a Deed of Trust?

Yes, you can sell a home with a Deed of Trust. However, just like a mortgage, if you’re selling the home for less than you owe on it, you’ll need approval from the lender.

When you close a deal with a Deed of Trust, there are three main documents that are important to note (however there are actually a number of other documents that’ll be signed as part of the process, too). The three biggest to keep in mind are: 

The Deed of Trust

The Promissory Note 

Just like with a mortgage, funds from the sale of the house will be used to pay off the beneficiary (the lender), and any remaining proceeds will go to the borrower. The Trustee is responsible for ensuring the money is appropriately dispersed. And as we noted earlier, the Trustee is also responsible for dissolving the Trust as the final part of the process.  

How Long Does a Deed of Trust Last?

A Deed of Trust will, just like a mortgage, have a maturity date that notes when a loan will be paid off in full. As long as the borrower makes scheduled payments per the agreement, the loan will be repaid, and the borrower will be the new legal owner who holds the title. 

How to Title a Property in a Trust

Whether you’re using a Deed of Trust or a mortgage to buy a home, the process can seem a bit overwhelming at times. Arming yourself with a clear understanding of how everything works is essential. It means you can feel confident in navigating the process, ultimately greatly reducing any potential stress. So what happens after you’re a homeowner? You may want to consider holding the property inside a Trust.

Holding real estate inside a Revocable Living Trust "> Revocable Living Trust can be beneficial for a number of reasons. First, it offers protection you wouldn’t otherwise have, while still allowing you to buy or sell exactly the same way you would if you weren’t holding it in a Trust. Other advantages include: 

The ability to avoid probate

Protection from creditors 

Saving on estate taxes

Traditionally, the process of putting your property into a Trust was expensive and stressful. But today, online Estate Planning services like those offered by companies such as Trust & Will make the process simple, streamlined and best of all, affordable. 

Home ownership is always an exciting opportunity. And when you’re informed about the process and you feel confident in your knowledge, it makes an otherwise potentially stressful experience easier to manage. Whether you’re taking out a mortgage, having a Deed of Trust or paying off an existing loan on your house, the more you know, the more powerful you can be in your decisions.

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What Is a Trust Deed?

Understanding trust deeds, trust deed vs. mortgage, what is included in a trust deed, foreclosures and trust deeds.

  • Investing in Trust Deeds
  • Real-World Example

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Trust Deed: What It Is, How It Works, Example Form

what is an assignment of a deed of trust

A trust deed —also known as a deed of trust —is a document sometimes used in real estate transactions in the U.S. It is a document that comes into play when one party has taken out a loan from another party to purchase a property. The trust deed represents an agreement between the borrower and a lender to have the property held in trust by a neutral and independent third party until the loan is paid off.

Although trust deeds are less common than they once were, some 20 states still mandate the use of one, rather than a mortgage , when financing is involved in the purchase of real estate. Trust deeds are common in Alaska, Arizona, California, Colorado, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Tennessee, Texas, Virginia, and West Virginia.

A few states—such as Kentucky, Maryland, and South Dakota—allow the use of both trust deeds and mortgages.

Key Takeaways

  • In financed real estate transactions, trust deeds transfer the legal title of a property to a third party—such as a bank, escrow company, or title company—to hold until the borrower repays their debt to the lender.
  • Trust deeds are used in place of mortgages in several states.
  • Investing in trust deeds can provide a high-yielding income stream.

Investopedia / Danie Drankwalter

A trust deed is a transaction between three parties:

  • Lenders , officially known as beneficiaries . These are the interests a trust is supposed to protect.
  • A borrower , otherwise known as a trustor . This is the person who establishes a trust.
  • A trustee , a third party charged with holding the entrusted property until a loan or debt is paid for in full.

In a real estate transaction—the purchase of a home, say—a lender gives the borrower money in exchange for one or more promissory notes linked to a trust deed. This deed transfers legal title to the real property to an impartial trustee , typically a title company, escrow company, or bank, which holds it as collateral for the promissory notes . The equitable title — the right to obtain full ownership — remains with the borrower, as does full use of and responsibility for the property.

This state of affairs continues throughout the repayment period of the loan. The trustee holds the legal title until the borrower pays the debt in full, at which point the title to the property transfers to the borrower. If the borrower defaults on the loan, the trustee takes full control of the property.

Trust deeds and mortgages are both used in bank and private loans for creating liens on real estate, and both are typically recorded as debt in the county where the property is located. However, there are some differences.

Number of Parties

A mortgage involves two parties: a borrower (or mortgagor) and a lender (or mortgagee). When a borrower signs a mortgage, they pledge the property as security to the lender to ensure repayment.

In contrast, a trust deed involves three parties: a borrower (or trustor), a lender (or beneficiary), and the trustee. The trustee holds title to the lien for the lender's benefit; if the borrower defaults, the trustee will initiate and complete the foreclosure process at the lender's request.

Type of Foreclosure

In the event of default, a deed of trust will result in different foreclosure procedures than a mortgage. A defaulted mortgage will result in a judicial foreclosure, meaning that the lender will have to secure a court order. Trust deeds go through a non-judicial foreclosure, provided that they include a power-of-sale clause.

Judicial foreclosures are more expensive and time-consuming than non-judicial foreclosures. This means that in states that allow them, a deed of trust is preferable to a mortgage from the lender's point of view.

Contrary to popular usage, a mortgage is not technically a loan to buy a property; it's an agreement that pledges the property as collateral for the loan.

A deed of trust will include the same type of information stated in a mortgage document, such as:

  • The identities of the borrower, lender, and trustee
  • A full description of the property to be placed in trust
  • Any restrictions or requirements on the use of the property while it is in trust
  • The terms of the loan, including principal, monthly payments, and interest rate
  • The terms of any late fees and penalties in the event of repayment

In addition, a trust deed will also include a power of sale clause that gives the trustee the right to sell the property if the borrower defaults.

Mortgages and trust deeds have different foreclosure processes. A judicial foreclosure is a court-supervised process enforced when the lender files a lawsuit against the borrower for defaulting on a mortgage. The process is time-consuming and expensive.

Also, if the foreclosed-property auction doesn't bring in enough money to pay off the promissory note, the lender may file a deficiency judgment against the borrower, suing for the balance. However, even after the property is sold, the borrower has the right of redemption : they may repay the lender within a set amount of time and acquire the property title.

In contrast, a trust deed lets the lender commence a faster and less-expensive non-judicial foreclosure, bypassing the court system and adhering to the procedures outlined in the trust deed and state law. If the borrower does not make the loan current, the property is put up for auction through a trustee's sale.

The title transfers from the trustee to the new owner through the trustee's deed after the sale. When there are no bidders at the trustee sale, the property reverts to the lender through a trustee's deed. Once the property is sold, the borrower has no right of redemption.

Furthermore, a trustee has the responsibility of paying the proceeds from the sale to the borrower and lender after the sale is finalized. The trustee will pay the lender the amount left over on the debt and pay the borrower anything that surpasses that amount, thereby allowing the lender to purchase the property.

Pros and Cons of Investing in Trust Deeds

Investors who are searching for juicy yields sometimes turn to the real estate sector—in particular, trust deeds.

In trust deed investing, the investor lends money to a developer working on a real estate project. The investor's name goes on the deed of trust as the lender. The investor collects interest on his loan; when the project is finished his principal is returned to him in full. A trust deed broker usually facilitates the deal.

High-yielding income stream

Portfolio diversification

Illiquidity

No capital appreciation

What sort of developer enters this arrangement? Banks are often reluctant to lend to certain types of developments, such as mid-size commercial projects—too small for the big lenders, too big for the small ones—or developers with poor track records or too many loans. Cautious lenders may also move too slowly for developers up against a tight deadline for commencing or completing a project.

Developers like these are often in a bit of a crunch. For these reasons, trust deed investors may often expect high-interest rates on their money. They can reap the benefits of diversifying into a different asset class, without having to be experts in real-estate construction or management. This is a form of passive investment .

Trust deed investing has certain risks and disadvantages. Unlike stocks, real estate investments are not liquid , meaning investors cannot retrieve their money on demand. Also, investors can expect only the interest the loan generates; any additional capital appreciation is unlikely.

Invested parties may exploit any legal discrepancies in the trust deed, causing costly legal entanglements that may endanger the investment. The typical investor with little experience may have difficulty, as it takes specific expertise to find credible and trustworthy developers, projects, and brokers.

Real-World Example of a Trust Deed

A short form deed of trust document used in Austin County, Texas , covers the requirements for most lenders. The form begins with a definition of terms and spaces for the borrower, lender, and trustee to fill in their names. The amount being borrowed and the address of the property are also required.

After this section, the document goes on to specify the transfer of rights in the property and uniform covenants including:

  • Details about payment of principal and interest
  • Escrow funds
  • Property insurance and structure maintenance
  • Structure occupancy—stipulating the borrower must take up residency within 60 days

The form also includes nonuniform covenants, which specify default or breach of any of the agreement terms. And it specifies that the loan the document deals with is not a home equity loan —that is, something the borrower will receive cash from—but one for purchasing the property.

The deed of trust ends with a space for the borrower's signature, which must be done in the presence of a notary and two witnesses, who also sign.

What Is Assignment in a Deed of Trust?

In real estate law, " assignment " is simply the transfer of a deed of trust from one party to another. This usually happens when the beneficiary of a trust deed sells their loan to another lender.

What Is Reconveyance in a Deed of Trust?

In real estate law, reconveyance means the transfer of a property from a lender or trustee to a borrower. This usually happens at the end of a mortgage or other loan, when the borrower has satisfied the terms of their debt.

Who Can Be a Trustee in a Deed of Trust?

Some states have laws limiting who can act as a trustee in a deed of trust. In these states, the trustee must be a bank, credit union, thrift, title insurance company, attorney, or other company specifically authorized to hold a trust. In other states, anyone can act as a trustee.

Trust deeds are an alternative to mortgages in certain states. Instead of an agreement directly between a lender and a borrower, a trust deed places the title of a property in the hands of a third party, or trustee. Only after the borrower has satisfied the terms of their debt to the lender will the property be fully transferred to the borrower.

Rocket Lawyer. " Which States Allow Deeds of Trust? "

Legal Information Institute. " Non-judicial Foreclosure ."

Legal Zoom. " Naming a Trustee in Your Deed of Trust ."

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what is an assignment of a deed of trust

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Deed of Trust: Definition, Uses

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Table of Contents

Deeds of trust vs. mortgages

How does a deed of trust work, deed of trust by state, deeds of trust vs. warranty deeds.

A deed of trust is a real estate transaction agreement that allows a third-party trustee to hold the property title until the borrower repays the lender in full. The third party in a deed of trust is typically a title company or real estate broker [0] Cornell Law School Legal Information Institute . Deed of Trust . Accessed Jun 1, 2023. View all sources .

Over half of states use deeds of trust instead of mortgages , which involve only two parties. However, in many states, home loans are colloquially referred to as “mortgages,” although they may legally be deeds of trust.

The main difference between a mortgage and a deed of trust is that if you fall behind on loan payments, the property can be foreclosed on more quickly with a deed of trust than with a mortgage.

A deed of trust is not to be confused with a living trust , which is an estate planning tool that helps avoid probate. It also doesn’t transfer ownership of the real property as a property deed does.

Deeds of trust and mortgages are lending agreements that place a lien, or legal claim until debt repayment, on real property. Here’s how they’re similar:

They’re subject to state laws.

Both are public record.

Both allow for foreclosure.

Both are considered contracts as opposed to loans.

However, there are two key differences:

Number of parties involved. A mortgage involves two parties: the lender and the borrower, while a deed of trust involves three parties: the lender, the borrower and the trustee.

Foreclosure type and time. Mortgages typically have to go through a judicial foreclosure, while deeds of trust generally can use a nonjudicial foreclosure process without involving the courts. Because a nonjudicial foreclosure process tends to be faster and less expensive than a judicial one, it usually takes less time and effort to foreclose with a deed of trust than with a mortgage.

As a home buyer, you don’t have the option to choose between a mortgage or a deed of trust, even if you live in one of the nine states that allow both. In those states, the lender chooses which document to use.

A deed of trust works similarly to a mortgage by making a piece of real property the collateral for a loan. This means that if you don’t make your loan payments on time, your lender can foreclose on the property. Unlike a mortgage, though, a deed of trust typically allows for foreclosure without the need to first obtain a court order.

Here’s how the process works:

The trust deed includes a promissory note that spells out the exact terms of the loan including the principal, interest, occupancy, insurance and maintenance requirements. The borrower signs this note, agreeing to repay the borrowed money.

The trustee holds legal ownership of the property or in some states just holds the lien, which is a legal claim to the asset, but has no control over that property unless the borrower doesn’t make their scheduled payments per the terms of the agreement.

While the buyer is making payments, the lender keeps the promissory note. Once the loan is paid off, however, the promissory note is marked “paid in full” and the deed is returned to the buyer. At this point, the buyer will own the property outright.

Requirements to create a deed of trust

A valid deed of trust must always involve three parties:

The borrower, also known as the trustor.

The lender, also known as the beneficiary .

The trustee, which is typically a title company that holds legal title to the real property or, in some states, just holds the lien.

The deed of trust document should contain the following information:

The names of all the involved parties (borrower, lender and trustee).

A description of the property involved.

The original amount of the loan.

Loan inception and maturity dates.

Any fees or riders involved.

What will happen in the event of loan default.

Depending on the nature of the sale, any other relevant details.

The following states (and Washington, D.C.) use deeds of trust instead of mortgages:

California.

Massachusetts.

Mississippi.

New Hampshire.

New Mexico.

North Carolina.

Rhode Island.

Washington.

West Virginia.

Deeds of trust and mortgages are allowed in these states:

South Dakota.

All remaining states use only mortgages:

Connecticut.

New Jersey.

North Dakota.

Pennsylvania.

South Carolina.

A warranty deed is a document required by some lenders before they approve financing. It certifies that the seller is the true owner of the property and has the right to sell it and that there are no outstanding debts, liens, judgments or encumbrances on the property.

A deed of trust is a lending contract, while a warranty deed is offered by a seller to a buyer for the buyer’s protection.

You can deduct your loan interest payments on your income tax return for home mortgages and deeds of trust. To do so, just be sure the property has been recorded as your principal residence in your county records [0] IRS.gov . Publication 936 (2022), Home Mortgage Interest Deduction . Accessed Jun 1, 2023. View all sources .

If you have a loan secured by a deed of trust and your lender sells that trust deed, an assignment of trust deed assigns that deed of trust to the new buyer of your loan (typically another lender). The assignment of deed of trust grants the new loan purchaser all rights to the property and is recorded as public record along with the original deed of trust.

A reconveyance in a deed of trust is a transfer of property (minus the lien) to the borrower from the trustee or the lender. This happens when the borrower has paid off the loan and satisfied the terms of the debt, and it means the lender no longer has an interest in the property.

You can deduct your loan interest payments on your income tax return for home mortgages and deeds of trust. To do so, just be sure the property has been recorded as your principal residence in your county records

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what is an assignment of a deed of trust

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REAL ESTATE LAW

What is a corporate assignment of deed of trust.

By Editorial Team

September 26, 2017

Reviewed by Michelle Seidel, B.Sc., LL.B./JD, MBA

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what is an assignment of a deed of trust

  • What Is a Deed of Trust With Assignment of Rents?

A deed of trust is often used interchangeably with the term mortgage (although they have varying meanings depending on the state) and is the document that assigns the title and value of the property to specific parties. In a typical deed of trust , the deed is held by a certain agency, usually the lender or the escrow company, while the borrower pays back the mortgage. When the mortgage is paid, the title is given back to the borrower, but deeds of trust do not always stay in the same hands all the time.

​ Read More: ​ What is an Assignment of Trust Deed?

An assignment of a deed of trust is simply the movement of the deed of trust from one party to another, a party that was not originally involved in the deed creation when the property was bought. A corporate assignment is simply an assignment of the deed of trust between different businesses. Since the majority of mortgages are created by banks and lending institutions and not private lenders, most assignments of deeds of trust are corporate by nature.

Lender Assignments

Not all lenders reassign the deeds of trust that they hold, but some do and the practice is common. The lender typically moves the deed of trust into the hands of another lender. The other lender takes the place of the organization that originally made the loan, and the mortgage contract rules now apply to the new business. Lenders do this for several different reasons. For example, many choose to assign deeds of trust when they are selling mortgages in order to create immediate profit for themselves by selling the possession of the deed itself.

Requirements

The key part of a corporate assignment of a deed of trust is the debt obligation. The acquiring company wants to make sure that the borrower will now be making payments to them, not the original lender, so assignments are usually very clear on this matter. Assignment forms vary by state in other matters, depending on what regulations states have when it comes to transferring mortgages and similar documents.

Reconveyance

When the mortgage is paid off, the escrow company will initiate a reconveyance, ending the deed and moving the title from the lender to the hands of the borrower. This is a final type of assignment. It is not strictly corporate unless the borrower also was a business, but it represents the end of the process and a reconveyance (known as a satisfaction or cancellation depending on the state) is closely related to an assignment.

​ Read More: ​ What Is a Deed of Trust With Assignment of Rents?

  • USLegal: Assignment of Deed of Trust or Mortgage
  • USLegal: Description -- California Assignment and Satisfaction of Mortgage Law
  • Legal Beagle: What is an Assignment of Trust Deed?
  • Legal Beagle: What Is a Deed of Trust With Assignment of Rents?
  • Legal Beagle: What Is the Difference Between a Deed and a Deed of Trust?
  • Legal Beagle: Title Vs. Deed of Trust

This article was written by Legal Beagle staff. If you have any questions, please reach out to us on our contact us page.

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Assignment of Deed

Table of contents, assignment of deed of trust.

An assignment of deed is used to show the deed of a property changing from one party to another, such as when a sale is made. It is used as the written proof to show who has rightful ownership of the property. When someone is purchasing property and decides to sell it before they have paid it off, an assignment of deed form would be used to transfer the rights and everything associated with the property over to the new owner.

When a debtor transfers real estate to a creditor, the  Assignment of Deed  is the legal document used to record this transfer. This happens when a lawsuit is filed on a property owner for a default in payment and the court’s rule in favor of the creditor; this is one example of when the deed of assignment would be put in to use. It’s used to show that the property is being transferred from the ownership of the defendant and given to the plaintiff that won the case and awarded the property.

It’s important to understand what these documents mean as they pertain to public property records as well as  personal background checks  into an individual. This could be exactly the type of information you need to help you gain a better understanding on someone or his or her history. It could also be in your own public background information if someone knows where to look for it.

Public records will always contain the history of who owns real property and the details on that property as it exchanges hands or ownership is passed. Anyone who knows how can access basic information about a deed or its assignments.

When a property owner uses an assignment of deed of trust, they are assigning ownership of the property to someone else and this is a very important document that should be kept in a safe and secure place. There are also public records kept on these types of documents and you should be able to request a copy – sometimes at a fee – should you need one.

The  Assignment of Deed  will also specify the rights the other person will receive along with the deed. As property transfers ownership like this, a recital is usually included as well which shows how many people and the identities of who has owned the property before. This allows you to see how many times the property has transferred hands over the course of its history.

Now that you know more about this particular property document, you will understand it when you use it. Whether you need it for your property or you are searching the  property records  of someone else for some reason, this information will be very beneficial to you.

We know that these types of legal matters can be confusing to the average person and that’s why we strive to make it easier to understand by giving you the basics here. Assignment of deed of trust documents do not have to confuse you anymore.

Assignment of Deed of Trust (Commercial Real Estate Loan) (TX) | Practical Law

what is an assignment of a deed of trust

Assignment of Deed of Trust (Commercial Real Estate Loan) (TX)

Practical law standard document w-035-0853  (approx. 18 pages).

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What Is a Deed of Trust With Assignment of Rents?

Marie Murdock

6 Tips to Save Using the Most Popular Food Delivery Apps

Some states refer to a voluntary lien against real property in exchange for money as a mortgage, while others refer to it as a deed of trust. Both mortgages and deeds of trust may incorporate an assignment of rents and leases that allows the lender to collect rent money held by,or due to, the property owner by tenants once the owner defaults or fails to make payments. An assignment of rents and leases may also be recorded as a separate document.

Absolute Assignment

A lender may require a borrower to execute an absolute assignment of rents in conjunction with a deed of trust. This conveys the rents to the lender at the time of the assignment but, in actuality, allows the borrower, as a licensee, to continue to collect the rents so long as the deed of trust is not in default. Payments under an absolute assignment will ordinarily be paid to the borrower or owner of the property as long as the loan secured by the deed of trust is not in default.

Collateral Assignment

In a collateral assignment, the borrower is generally considered to retain ownership of the rents until the lender takes action to enforce the assignment or gains possession of the property through foreclosure. One concern for the lender in this instance is that, in a judgement, other creditors will take priority, causing the lender to lose its security interest in the rent.

Rights After Default

Under an absolute assignment, if a borrower defaults on the deed of trust, the lender may request appointment of a receiver to collect the rents until foreclosure of the deed of trust or a determination of ownership of rents by a court of law. This prevents the borrower’s disposing of rent money due the lender, pending foreclosure. Under a collateral interest, however, some bankruptcy courts have held that the rents belong to the borrower until title to the real estate merges with the right to collect rents. If this is the case, and the borrower continues to operate as a debtor-in-possession of the property under bankruptcy, the lender may not be entitled to receive any rent money unless or until the bankruptcy court allows foreclosure of the property.

Uniform Assignment of Rents Act

Due to the inconsistency in interpretation of state law pertaining to assignment of rents and leases, some states have adopted a Uniform Assignment of Rents Act that better clarifies how rent monies will be handled in the event of default under the deed of trust and loan documents. The uniform act generally strengthens the lender’s position by recognizing his interest in rent money pending foreclosure and bankruptcy proceedings.

  • Agentxtra.net: Assignment of Rents, Leases and Profits
  • Polsinelli Shughart: Exercising an Assignment of Rents: Who is Entitled to the Money?
  • Andrews Kurth, LLP: Texas Enacts the Texas Assignment of Rents Act
  • Much Shelist: Assignment of Rents in Illinois: Shaky Ground for Commercial Lenders

Marie Murdock has been employed in the legal and title insurance industries for over 25 years. Murdock was first published in print in 1979 and has been writing online articles since mid-2010. Her articles have appeared on LegalZoom and various other websites.

what is an assignment of a deed of trust

Understanding a deed of assignment for intellectual property

A deed of transfer is used to change the ownership of intellectual property, a common occurrence in business. Explore how and when to use one.

Find out more about intellectual property basics

what is an assignment of a deed of trust

by   Brette Sember, J.D.

Brette Sember, J.D., practiced law in New York, including divorce, mediation, family law, adoption, probate and estat...

Read more...

Updated on: January 22, 2024 · 3min read

Understanding intellectual property in business

How to transfer intellectual property rights in business, what to include in a deed of assignment, registering new ownership, restrictions on intellectual property transfers.

Most companies have intellectual property as part of their assets, including software, product design, or copyright to white papers. Buying or selling such property is done using a document called a deed of assignment.

Illustrations and graphics surrounding the words "Intellectual Property"

A large part of what a business consists of may be tied to intellectual property . It's easy to see physical property a company owns, such as a building, office furniture, or inventory, but intellectual property can be more challenging to identify.

Most businesses have intellectual property, or works created by human minds or, in some cases, by computers. Some examples of intellectual property include architectural drawings, ad campaigns, company or product names, inventions, and source code.

Examples of when transfers of intellectual property might happen include when a company is buying another company, when you are setting up an LLC and want to transfer your intellectual property into the company, or when a business buys product rights from another company or individual.

A deed of assignment can be done in one transaction, instead of one transaction for each item of intellectual property, by transferring all ownership rights of all intellectual property detailed in the deed. The document is signed by both the buyer and seller. No payment is required for it to be valid.

A deed of assignment must be in writing and should include:

  • The names and addresses of the assignor and assignee
  • A description of the program or product for which the rights are being transferred
  • A statement that all intellectual property rights to the property are being transferred
  • Signatures of the parties and the date of the agreement execution

The deed could also include the following sections, where applicable:

  • Consideration, or payment, to be made to the original owner.
  • Warranties, or promises that the intellectual property rights being assigned don't infringe on anyone else's intellectual property rights . For example, in a deed regarding the transfer of a copyright, this section could state that the copyrighted work is original and not owned by someone else.
  • Indemnification, or promise by the seller to reimburse the assignee if there is some problem with title to the property.
  • Future assignments. For example, the agreement could be ongoing, so that anything the assignor creates in the future for this product or program is also transferred to the buyer.

Although a deed of assignment transfers ownership in intellectual property , it does not change the registration of the ownership. The assignee is responsible for handling all registration requirements.

For example, if a patent is transferred via a deed of assignment, the new owner must record the change in ownership with the U.S. Patent and Trademark Office. Similarly, the transfer of a copyright is recorded with the U.S. Copyright Office.

Transfers of intellectual property must comply with U.S. laws. One obvious caveat is that you can't transfer property you don't own. Transfers must also comply with antitrust laws, which are set up to prevent one company from completely dominating an industry.

If intellectual property rights are being transferred overseas, the transfer must comply with Export Administration Regulations and the International Traffic in Arms Regulations , which are designed to protect national security and trade.

The deed of assignment can be a crucial part of a business deal or transaction. You can create a deed of assignment yourself, or you can work with an attorney .

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The Most Important Writing Exercise I’ve Ever Assigned

An illustration of several houses. One person walks away from a house with a second person isolated in a window.

By Rachel Kadish

Ms. Kadish is the author of the novel “The Weight of Ink.”

“Write down a phrase you find abhorrent — something you yourself would never say.”

My students looked startled, but they cooperated. They knew I wouldn’t collect this exercise; what they wrote would be private unless they chose to share it. All that was required of them was participation.

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For more than two decades, I’ve taught versions of this fiction-writing exercise. I’ve used it in universities, middle schools and private workshops, with 7-year-olds and 70-year-olds. But in recent years openness to this exercise and to the imaginative leap it’s designed to teach has shrunk to a pinprick. As our country’s public conversation has gotten angrier, I’ve noticed that students’ approach to the exercise has become more brittle, regardless of whether students lean right or left.

Each semester, I wonder whether the aperture through which we allow empathy has so drastically narrowed as to foreclose a full view of our fellow human beings. Maybe there are times so contentious or so painful that people simply withdraw to their own silos. I’ve certainly felt that inward pull myself. There are times when a leap into someone else’s perspective feels impossible.

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Unflinching empathy, which is the muscle the lesson is designed to exercise, is a prerequisite for literature strong enough to wrestle with the real world. On the page it allows us to spot signs of humanity; off the page it can teach us to start a conversation with the strangest of strangers, to thrive alongside difference. It can even affect those life-or-death choices we make instinctively in a crisis. This kind of empathy has nothing to do with being nice, and it’s not for the faint of heart.

Even within the safety of the page, it’s tempting to dodge empathy’s challenge, instead demonizing villains and idealizing heroes, but that’s when the needle on art’s moral compass goes inert. Then we’re navigating blind: confident that we know what the bad people look like and that they’re not us — and therefore we’re at no risk of error.

Our best writers, in contrast, portray humans in their full complexity. This is what Gish Jen is doing in the short story “Who’s Irish?” and Rohinton Mistry in the novel “A Fine Balance.” Line by line, these writers illuminate the inner worlds of characters who cause harm — which is not the same as forgiving them. No one would ever say that Toni Morrison forgives the character Cholly Breedlove, who rapes his daughter in “The Bluest Eye.” What Ms. Morrison accomplishes instead is the boldest act of moral and emotional understanding I’ve ever seen on the page.

In the classroom exercise, the upsetting phrases my students scribble might be personal (“You’ll never be a writer,” “You’re ugly”) or religious or political. Once a student wrote a phrase condemning abortion as another student across the table wrote a phrase defending it. Sometimes there are stereotypes, slurs — whatever the students choose to grapple with. Of course, it’s disturbing to step into the shoes of someone whose words or deeds repel us. Writing these monologues, my graduate students, who know what “first person” means, will dodge and write in third, with the distanced “he said” instead of “I said.”

But if they can withstand the challenges of first person, sometimes something happens. They emerge shaken and eager to expand on what they’ve written. I look up from tidying my notes to discover students lingering after dismissal with that alert expression that says the exercise made them feel something they needed to feel.

Over the years, as my students’ statements became more political and as jargon (“deplorables,” “snowflakes”) supplanted the language of personal experience, I adapted the exercise. Worrying that I’d been too sanguine about possible pitfalls, I made it entirely silent, so no student would have to hear another’s troubling statement or fear being judged for their own. Any students who wanted to share their monologues with me could stay after class rather than read to the group. Later, I added another caveat: If your troubling statement is so offensive, you can’t imagine the person who says it as a full human being, choose something less troubling. Next, I narrowed the parameters: No politics. The pandemic’s virtual classes made risk taking harder; I moved the exercise deeper into the semester so students would feel more at ease.

After one session, a student stayed behind in the virtual meeting room. She’d failed to include empathy in her monologue about a character whose politics she abhorred. Her omission bothered her. I was impressed by her honesty. She’d constructed a caricature and recognized it. Most of us don’t.

For years, I’ve quietly completed the exercise alongside my students. Some days nothing sparks. When it goes well, though, the experience is disquieting. The hard part, it turns out, isn’t the empathy itself but what follows: the annihilating notion that people whose fears or joys or humor I appreciate may themselves be indifferent to all my cherished conceptions of the world.

Then the 10-minute timer sounds, and I haul myself back to the business of the classroom — shaken by the vastness of the world but more curious about the people in it. I put my trust in that curiosity. What better choice does any of us have? And in the sanctuary of my classroom I keep trying, handing along what literature handed me: the small, sturdy magic trick any of us can work, as long as we’re willing to risk it.

Rachel Kadish is the author of the novel “The Weight of Ink.”

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  1. What is an Assignment of Trust Deed?

    "Assignment" means to convey a claim or a right to another party, known as the "assignee." This is done by creating another legal document — the assignment of trust deed — and having it signed by both buyer and seller. The trust deed, and other documents associated with the loan, become the property of the buyer. Document

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    Assigning Trust Deeds For financial benefit, lenders sometimes choose to sell their rights in deed of trust mortgages to other lenders. This process is known as assignment of the mortgage.

  3. Deed Of Trust: What It Is And How It Works

    A deed of trust is a legal document that secures a real estate transaction. It works similarly to a mortgage, though it's not quite the same thing. Essentially, it states that a designated...

  4. What Is a Deed of Trust With Assignment of Rents?

    A deed of trust may contain an assignment of rents clause for that same property. In addition to a clause in the deed of trust, the lender may also require the borrower to execute a separate document called an "Assignment of Rents" that is recorded with the register of deeds.

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    An assignment of deed of trust is used by a lender when it sells its loan secured by a deed of trust. Property Deeds Real estate transactions that involve the transfer of property rights...

  6. Deed of Trust: Meaning, How it Works, Benefits

    A deed of trust (also known as a trust deed) is a document sometimes used in financed real estate transactions, generally instead of a mortgage. Deeds of trust transfer the legal title...

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    A Deed of Trust definition is most easily expressed as an agreement between a borrower, a lender and a third party known as the Trustee. Deeds of Trust work in a simple manner: a lender gives money to a borrower for a home purchase. In exchange, the lender receives a promissory note that guarantees the borrower will repay the loan amount.

  10. Trust Deed: What It Is, How It Works, Example Form

    In financed real estate transactions, trust deeds transfer the legal title of a property to a third party—such as a bank, escrow company, or title company—to hold until the borrower repays...

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    Deeds of trust are used in conjunction with promissory notes. The deed of trust is the security for the amount loaned to finance the real estate purchase, and is secured by the underlying piece of real estate. The deed of trust is what secures the promissory note. The promissory note includes the interest rate, the payment amounts and terms ...

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    A deed of trust is a real estate transaction agreement that allows a third-party trustee to hold the property title until the borrower repays the lender in full. The third party in a deed of trust ...

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    Getty An assignment of trust deed is a document that lenders use when they sell loans secured by trust deeds. While they can freely sell the promissory notes between themselves, the trust deeds that give them the right to foreclose have to be assigned with a legal document.

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    A deed of trust is an agreement between a home buyer and a lender at the closing of a property. The agreement states that the home buyer will repay the home loan and the mortgage lender will hold the property's legal title until the loan is paid in full. A deed of trust is a type of secured real estate transaction that some states use instead ...

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    A trust deed with rent assignment clause empowers your lender. Getty When you buy a home with the help of a mortgage in California, you'll sign a "deed of trust." This document pledges your property as security for the loan. When you buy a rental property, you'll sign an equivalent document called a "deed of trust with assignment of rents."

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    Deed of Trust, Assignment of Leases and Rents, Security Agreement, Financing Statement, and Fixture Filing (Pro-Lender Short Form) by Practical Law Real Estate Maintained • USA (National/Federal) A short form deed of trust useful for commercial loans secured primarily by real estate.

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    Again, while a mortgage involves two parties, a deed of trust involves three: the trustor (the borrower) the lender (sometimes called a "beneficiary"), and. the trustee. The trustee is an independent third party, like a title company, trustee company, or bank. The trustee holds "bare" or "legal" title to the property.

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    An assignment of deed of trust under Texas law. This Standard Document can be used to assign and transfer the beneficial interest under a Texas deed of trust from one lender to another lender. This Standard Document is intended for use with the financing of commercial properties in Texas and has integrated notes with important explanations and drafting and negotiating tips for both the ...

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    ASSIGNMENT OF DEED OF TRUST FOR VALUE RECEIVED, the undersigned hereby grants, assigns and transfers to all beneficial interest under that certain Deed of Trust dated executed by to and recorded as Instrument No. Recorder's office of on , as Trustor , Trustee , of Official Records in the County County, California.

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    Both mortgages and deeds of trust may incorporate an assignment of rents and leases that allows the lender to collect rent money held by,or due to, the property owner by tenants once the owner defaults or fails to make payments. An assignment of rents and leases may also be recorded as a separate document. Absolute Assignment

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    A deed of assignment must be in writing and should include: The names and addresses of the assignor and assignee. A description of the program or product for which the rights are being transferred. A statement that all intellectual property rights to the property are being transferred. Signatures of the parties and the date of the agreement ...

  24. Opinion

    Ms. Kadish is the author of the novel "The Weight of Ink." "Write down a phrase you find abhorrent — something you yourself would never say." My students looked startled but they ...