All Inclusive Trust Deed Template for the United States

An All Inclusive Trust Deed (AITD) is a specialized financing instrument that enables wrap-around financing in real estate transactions. You use this document when you need to create seller financing while maintaining existing mortgage obligations on the property. The AITD allows the seller to receive payments from the buyer while continuing to service underlying loans, with a trustee holding legal title as security for all parties.

When do you need this document?

You need an All Inclusive Trust Deed when selling property with existing financing that cannot or should not be paid off at closing. This situation commonly occurs when interest rates have risen significantly since the original loan was obtained, making it advantageous to maintain the lower-rate existing financing. You might also use an AITD when the buyer cannot qualify for traditional financing but can afford the property payments, or when you want to create an income stream through seller financing while maintaining the tax benefits of existing loan interest deductions.

Key legal considerations

The AITD creates a complex legal relationship requiring careful attention to payment priorities and default provisions. You must ensure that payments received from the buyer adequately cover underlying loan obligations plus your profit margin, while building in protections against buyer default. The security interest provisions must clearly establish the trustee's role and powers, including foreclosure procedures that comply with both federal and state requirements. Critical clauses include acceleration provisions, insurance requirements, property maintenance obligations, and detailed default remedies that protect your interests while respecting the buyer's rights.

Legal requirements in United States

Federal Truth in Lending Act (TILA) requires specific disclosures when you provide seller financing, including annual percentage rates and total finance charges. You must comply with Real Estate Settlement Procedures Act (RESPA) disclosure requirements and ensure the transaction doesn't violate Dodd-Frank Act provisions regarding qualified mortgages. State trust deed laws govern recording requirements, notarization procedures, and foreclosure processes, which vary significantly across jurisdictions. You must also ensure compliance with Federal Fair Housing Act non-discrimination requirements and verify that due-on-sale clauses in underlying loans don't prohibit the AITD arrangement. Proper recording in public records is essential to perfect your security interest and establish priority over subsequent creditors.