ALL >> Legal >> View Article
What Is The Difference Between The Note And Deed Of Trust?
A note, usually known as a promissory note, which is a written promise to repay a loan. Whereas, a trust deed is a document used to protect paying back of a loan that is being documented as a lien counter to the borrower's real estate. It is necessary to use a promissory note in order to avoid any breach in future. The various important terms of the loan should be specified in a promissory note including the loan amount, rate of interest (if any), and terms and conditions of repayment. It must be signed by the borrower with date in order to make it a valid document.
A deed of trust is a document that involves three parties generally known as the borrower, lender and a trustee. This document includes all the basic terms of the loan and should be signed by the borrower. It is documented as a lien contrary to the borrower's real estate. It is generally taken as a collateral document that works consecutively with the promissory note. In this document, ...
... the real property of the borrower is guaranteed as a lien to the lender. In case, the borrower is not able to pay back the loan amount, the lender may take the borrower's real property by way of the system of foreclosure.
A promissory note is a legal document that laid out all the essential things like how and when the borrower will pay back the money to a lender, the interest rate and the schedule of payment. It contains the undertaking of the borrower to repay the borrowed money within the specified time period. It is the personal obligation of the borrower to repay the money and has no relationship with any real estate or other property.
Therefore, it can be understood that although, both the Note and Deed of Trust are an agreement for repayment of a loan, the two are independent elements of a common mortgage loan. A deed offers the lien on the property in order to secure repayment of the loan. And, a note is completely a commitment between the borrower and the lender. The terms of this agreement can be modified at any period of time with the consent of both the parties. The deed of trust appears in the public property records, whereas, the note is completely a private document that never appears in public records and therefore it is administratively very easy to make any modifications in the note.
Allan Stave is a USA author. He is working with lawyerslegalformsanddocuments as an legal services. We are a legal services organization based in San Jose, California. If you are looking for any information on Note and Deed of Trust than please contact us.
Add Comment
Legal Articles
1. Bail Lawyer In Cyber Crime Case In Delhi – Advocate Deepak: Your Trusted Legal PartnerAuthor: Advocate Deepak
2. Chicago Personal Injury Lawyers
Author: Paul M. Marriett
3. The Bruner Law Firm
Author: Vince Bruner
4. Bail Lawyer In Cyber Crime Cases In Noida: Advocate Deepak
Author: Advocate Deepak
5. The Journey Of Lady Advocates In Chennai's Male-dominated Field
Author: Sonu Kumar
6. Best Cyber Crime Lawyer In Ghaziabad – Advocate Deepak
Author: Advocate Deepak
7. Revealed: Secret Strategies To Dominate Government Sales On Gem!
Author: Bidz Professional
8. What To Look For In An Experienced Ri Divorce Lawyer
Author: John Grasso
9. Everything You Need To Know Before Investing In Saudi Arabia
Author: jodonjo
10. Spousal Alimony In California: What It Is And How It's Decided
Author: Thomas D. Nares
11. Balancing Investor Protection And Industry Growth: Sebi Lawyers' Take On Investment Advisers’ Reforms
Author: Dev kumar
12. "transparent Processes: Building Public Trust Through Stringent Pcc Attestation Measures"
Author: shareeba
13. How To Open An Llc As A Saudi
Author: jodonjo
14. Navigating The Road To Recovery After A Minneapolis Truck Accident: Why A Local Attorney Is Key
Author: sussmanlaw
15. Uk Spouse Visa Explained: How To Join Your Partner In The Uk
Author: The SmartMove2UK