What is a deed of trust note?

A deed of trust note is a legal document used in California real estate law that states the terms of a loan taken out against a piece of property. The document is a promise from the borrower to the lender to repay the loan according to the terms laid out in the note. The note outlines the loan amount, interest rate, due dates, and other details about the loan. The note must be signed by the borrower and notarized to be officially valid, and it is typically held in trust by a third-party trustee. In the event the borrower defaults on the loan, the trustee is authorized to take the property and sell it to recover the loan amount. This process is known as foreclosure. The deed of trust note is basically an agreement between the lender and borrower that is protected by the law. It is important to read and understand the terms of the deed of trust note before signing it. If either party doesn’t live up to the agreement, they can be held accountable by the court. Understanding and following the terms of the deed of trust note can help ensure a smooth and successful transaction.

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What is a deed of trust note?

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