The most common instrument used to create a security interest in real property in Washington is the deed of trust. The Deed of Trust
Deed of trust
In real estate in the United States, a deed of trust or trust deed is a deed wherein legal title in real property is transferred to a trustee, which holds it as security for a loan (debt) between a borrower and lender. The equitable title remains with the borrower. The borrower is referred to as the trustor, while the lender is referred to as the beneficiary.
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.
How do you search for a deed of trust?
When a deed search is requested, we follow these procedures:
- We locate the cumulative index (if available), usually in a book separate from the deed books. ...
- We check to see if the index indicates the date of the deed. ...
- If the dates are not shown in the index entries, we determine which deeds books were in use during the dates requested in the search. ...
Should I sign deed of trust?
You only need to sign a trust deed when you purchase a new home. If you’re taking the money you’ve received from the sale of your home to purchase a new home and you’ll need a mortgage loan to do so, that’s the only time where you’ll need to sign a trust deed.
Is a deed of trust considered a contract and if?
Neither a trust deed nor a contract for an act is a true deed. A deed is a document used to transfer ownership of real estate; Trust deeds and deed contracts are land purchase agreements, each of which is legally different from a mortgage. Both include someone who owns ownership of the property until you have made all payments for your loan.
Is Washington a deed of trust state?
Deeds of trust are the most common instrument used in the financing of real estate purchases in Alaska, Arizona, California, Colorado, the District of Columbia, Idaho, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, North Carolina, Oregon, Tennessee, Texas, Utah, Virginia, Washington, and West Virginia, ...
Is Washington a mortgage or deed of trust state?
Start Deed of TrustStateMortgage allowedDeed of trust allowedWashingtonYWest VirginiaYWisconsinYWyomingY47 more rows
Does a deed of trust expire in Washington state?
Promissory notes and deeds of trust are subject to Washington's six-year statute of limitations. Installment notes have two separate six-year limitations periods.
Do trusts have to be registered in Washington State?
The trustee must register the trust by filing with the clerk of the court in any county where venue lies for the trust under RCW 11.96A.
What is the difference between a deed and a deed of trust?
Both a warranty deed and deed of trust are used to transfer the title of a property from one person to another. However, the difference between these two contracts is who is protected. As you now know, a deed of trust protects the beneficiary (lender). A warranty deed, on the other hand, protects the property owner.
How does a trust work in Washington state?
A Washington living trust holds your assets in trust while you continue to use and control them. After your death, the trust passes assets to your beneficiaries according to your instructions. A revocable living trust can provide flexibility and control.
How do I release a deed of trust in Washington state?
Removal of the deed of trust is usually done by a “reconveyance” of the property affected by the deed of trust. In the typical case, when the money has been paid in full or the obligation has been fully performed, the beneficiary of the deed of trust makes a written request to the trustee to “reconvey” the property.
Will I lose my house with a trust deed?
Unless your home has been excluded from your trust deed by agreement with your creditors, the property might be transferred to the trustee in order for equity to be released and the resulting money paid to creditors. Equity is defined as the value of your property minus the amount of any mortgage or secured loan.
Where do you keep a deed of trust?
Under no circumstances should you keep house deeds in a dresser drawer or under your bed. Keeping deeds and other important documents in a high-quality safe is a good option.
Does a trust avoid Washington state estate tax?
Minimize Your Washington Estate Taxes with a Bypass Trust However, if one's estate is worth more than $2 Million, some simple planning using trusts can be done to reduce or avoid the Washington Estate Tax.
Do deeds of trust need to be registered?
Keeping ownership interests private Because a deed of trust is not legally required to be registered anywhere (although it is possible to register it at the Land Registry), the underlying financing of the purchase can be kept private.
Is it better to have a will or a trust in Washington state?
All told, the decision to use a will or a trust is largely dependent on your life circumstances and where you live. As an example, Washington State has a nominal flat-rate probate fee and a relatively straightforward probate process, so using a trust solely to avoid the cost of probate may not be the best choice.
Is a deed of trust the same as a mortgage?
A deed of trust is a legal agreement that's similar to a mortgage, which is used in real estate transactions. Whereas a mortgage only involves the lender and a borrower, a deed of trust adds a neutral third party that holds rights to the real estate until the loan is paid or the borrower defaults.
Is Washington an escrow state?
Part 3: The closing itself In Washington, an escrow state, closing consists of the following steps: A title search is run early in the purchase process to determine if there are any liens or assessments on the title. Provided the title is deemed 'clear,' title insurance is prepared and the closing proceeds as planned.
What is the difference between deed of trust & mortgage documents?
Difference Between Trust Deed And Mortgage. The primary difference between a trust deed vs mortgage is the foreclosure process. Trust deed involves the loan's non-judicial foreclosure in a speedier, cheaper way. A mortgage requires judicial foreclosure of the loan, which is time-consuming and costly.
Which is better deed of trust or mortgage?
From a lender's perspective, a deed of trust is usually better because it can foreclose more quickly using a nonjudicial process if the borrower stops making payments.
What is a deed of trust in Washington?
In Washington, a Deed of Trust is the most commonly used instrument to secure a loan. Foreclosure can be done non-judicially, saving time and expense. This process is called a Trustee Sale. There are three parties in this Deed of Trust: 1- The Grantor (Borrower) 2- Beneficiary (Lender) and a.
What is a trustee or beneficiary?
A Trustee or beneficiary/Lender can take an action against any person for damages. These forms are flexible, they can be used for financing residential property, agricultural property, rental property, condominiums, and or small office buildings, with or without existing liens and encumbrances.
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Is a deed of trust subject to mortgage laws?
Except as provided in this chapter, a deed of trust is subject to all laws relating to mortgages on real property. A deed conveying real property to a trustee in trust to secure the performance of an obligation of the grantor or another to the beneficiary may be foreclosed by trustee's sale.
Who records a deed of trust?
The county auditor shall record the deed as a mortgage and shall index the name of the grantor as mortgagor and the names of the trustee and beneficiary as mortgagee. No person, corporation or association may be both trustee and beneficiary under the same deed of trust: PROVIDED, That any agency of the United States government may be both trustee ...
How to sign a deed of trust in Washington?
Sign the deed of trust form in the presence of a notary. You'll have to provide your identification to the notary with a federally issued photo ID such as a Washington driver’s license or military ID card. Once you sign the deed in front of the notary, the notary will then notarize the form.
How to mail a deed of trust?
You may want to mail the deed of trust using a tracking shipment method, such as certified or registered mail, or using a delivery service that provides delivery confirmation. The County Clerk's office may charge a filing fee, so check with the County Clerk to see what the filing fee is and what forms of payment they accept in person and via mail.
Where to file a deed of trust in Washington State?
If you are buying a property or deeding over a property you own to someone else, then in order to make it legal and have the deed recorded in the public records, you must file the deed of trust form with the County Clerk’s office in the county where the property is located .
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Kristie Lorette started writing professionally in 1996. She earned her Bachelor of Science degree in marketing and multinational business from Florida State University and a Master of Business Administration from Nova Southeastern University.
What is the RCW 64.04.040?
The trustee's deed should comply with the statutory form of a bargain and sale deed under RCW 64.04.040 and requires, in addition to the granting trustee's name, recital of the name and date the trust as part of the grantor information.
What is a deed in a trust in Washington?
The Washington trustee's deed (bargain and sale deed) transfers fee simple interest to the grantee with a limited warranty and contains the express covenants most typically associated with a special warranty deed, ...
What is a deed to convey living trust in Washington State?
The trustee's deed to convey living trust real estate in Washington State is a bargain and sale deed (a statutory form in Washington under RCW 64.04.040) that has been descriptively named for the executing party.
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Who administers a trust?
The settlor administers the trust during his lifetime as trustee, though not always, and typically designates a successor trustee to replace him as trustee in the event of death or incapacitation. Real property is transferred into trust by a deed from the settlor, granting the property to the trust in the name of the trustee.
Who transfers assets in a living trust?
In a living trust, a settlor transfers assets to another person (the trustee) for the benefit of someone else (the beneficiary). In many living trust arrangements, these roles may be performed by the same person, so long as the sole trustee is not also the sole beneficiary.
Who said "This deed helped me a lot"?
Robert K. said: This deed helped me a lot
What are the notices of default, trustee's sale, and foreclosure?
The beneficiary may give the notices of default, trustee's sale, and foreclosure referred to in RCW * 61.24.030 (7) and 61.24.040 to any one or more of the guarantors of a commercial loan at the time they are given to the grantor. In addition to the information contained in the notices provided to the grantor, these notices shall state that (1) the guarantor may be liable for a deficiency judgment to the extent the sale price obtained at the trustee's sale is less than the debt secured by the deed of trust; (2) the guarantor has the same rights to reinstate the debt, cure the default, or repay the debt as is given to the grantor in order to avoid the trustee's sale; (3) the guarantor will have no right to redeem the property after the trustee's sale; (4) subject to such longer periods as are provided in the Washington deed of trust act, chapter 61.24 RCW, any action brought to enforce a guaranty must be commenced within one year after the trustee's sale, or the last trustee's sale under any deed of trust granted to secure the same debt; and (5) in any action for a deficiency, the guarantor will have the right to establish the fair value of the property as of the date of the trustee's sale, less prior liens and encumbrances, and to limit its liability for a deficiency to the difference between the debt and the greater of such fair value or the sale price paid at the trustee's sale, plus interest and costs. The failure of the beneficiary to provide any guarantor the notice referred to in this section does not invalidate either the notices given to the borrower or the grantor, or the trustee's sale.
What is RCW 61.24.163?
(1) RCW 61.24.163 applies only to deeds of trust that are recorded against owner-occupied residential real property of up to four units. The property must have been owner-occupied as of the date the initial contact under RCW 61.24.031 was made.
What is the duty of servicer in a deed of trust pool?
Deed of trust pool—Duty of servicer to maximize net present value.
What happens after a trustee sells a deed of trust?
After a trustee's sale, no person shall have any right, by statute or otherwise, to redeem the property sold at the trustee's sale.
What is an unfair or deceptive act or practice?
(1) It is an unfair or deceptive act or practice under the consumer protection act, chapter 19.86 RCW, for any person, acting alone or in concert with others, to offer, or offer to accept or accept from another, any consideration of any type not to bid, or to reduce a bid, at a sale of property conducted pursuant to a power of sale in a deed of trust. The trustee may decline to complete a sale or deliver the trustee's deed and refund the purchase price, if it appears that the bidding has been collusive or defective, or that the sale might have been void. However, it is not an unfair or deceptive act or practice for any person, including a trustee, to state that a property subject to a recorded notice of trustee's sale or subject to a sale conducted pursuant to this chapter is being sold in an "as-is" condition, or for the beneficiary to arrange to provide financing for a particular bidder or to reach any good faith agreement with the borrower, grantor, any guarantor, or any junior lienholder.
What is a deed of trust for agricultural purposes?
(2) That the deed of trust contains a statement that the real property conveyed is not used principally for agricultural purposes; provided, if the statement is false on the date the deed of trust was granted or amended to include that statement, and false on the date of the trustee's sale, then the deed of trust must be foreclosed judicially. Real property is used for agricultural purposes if it is used in an operation that produces crops, livestock, or aquatic goods;
What is the P.L. 108-189?
All of the rights, duties, and privileges conveyed under the federal servicemembers civil relief act, P.L. 108-189, are applicable to deeds of trust under Washington law.
What is a mortgage deed of trust?
Mortgage States and Deed of Trust States. When someone finances a home, the lender secures the loan to the home by having the borrower sign either a mortgage or a deed of trust. The lender then records the document in the public records were the home is located. The instrument being secured by these documents is most commonly called ...
What is a promissory note?
The instrument being secured by these documents is most commonly called a promissory note. A main purpose for the security instrument is that if the terms are the promissory note are not met by the borrower, the lender can take ownership of the home and sell to it in order recuperate the amount that was lent. State. Mortgage State.
Why do lenders prefer deeds of trust?
So, because of the ease of foreclosure, many lenders prefer a deed of trust over a mortgage. If you are going to use one or more of these instruments, it is important to know which should be used in the state where you are intend to use it.
Can a deed be transferred to a land trust?
Many homeowners want privacy of ownership and to keep their names out of the public records. So, we establish Land Trusts, which can keep ownership private. Then a deed is drafted to transfer ownership of the property into the trust. The Garn St. Germain Depository Institutions Act of 1982 does not allow a lender to prevent a homeowner from placing a home in a Land Trust. This is the case for single family homes, duplexes, triplexes or fourplexes where the former owner of the home, who is responsible for the loan, is also the beneficiary of the trust.
Can a lender prevent a home from being placed in a land trust?
The Garn St. Germain Depository Institutions Act of 1982 does not allow a lender to prevent a homeowner from placing a home in a Land Trust. This is the case for single family homes, duplexes, triplexes or fourplexes where the owner of the home becomes the beneficiary of the trust. Last Updated on November 2, 2018.
