Pocket Deed Of Trust for the United States

Pocket Deed Of Trust Template for United States

A Pocket Deed of Trust is a legal instrument used in the United States that creates a security interest in real property without immediate recording. It serves as a security device where the grantor transfers legal title to a trustee to hold for the benefit of a lender, but the deed is held 'in pocket' rather than recorded immediately. This arrangement is commonly used in various U.S. states that recognize deed of trust transactions, though specific requirements vary by jurisdiction.

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Pocket Deed Of Trust

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What is a Pocket Deed Of Trust?

A Pocket Deed of Trust is utilized when parties wish to create a security interest in real property while maintaining flexibility in recording timing. This document type is particularly relevant in situations where immediate recording may not be desired or necessary, such as in contingent financing arrangements or staged property transactions. The Pocket Deed of Trust contains all standard deed of trust provisions but remains unrecorded until a triggering event occurs. This arrangement is recognized in many U.S. jurisdictions, though practitioners should be aware of state-specific requirements and potential risks associated with delayed recording.

What sections should be included in a Pocket Deed Of Trust?

1. Parties: Identifies the trustor (grantor), trustee, and beneficiary involved in the deed of trust

2. Property Description: Legal description of the real property being conveyed, including address, boundaries, and parcel numbers

3. Trust Terms: Fundamental terms of the trust arrangement, including purpose and duration

4. Security Provisions: Details of the security interest being created and obligations being secured

5. Default Provisions: Conditions constituting default and remedies available to the beneficiary

6. Recording Provisions: Terms regarding the recording of the deed and any specific conditions for delayed recording

What sections are optional to include in a Pocket Deed Of Trust?

1. Power of Sale: Provisions granting the trustee the right to sell the property in case of default (included in non-judicial foreclosure states)

2. Assignment Rights: Terms governing the right to assign or transfer beneficial interests under the deed of trust

3. Insurance Requirements: Specific requirements for property insurance and maintenance

4. Due on Sale Clause: Provision making the entire debt due if the property is sold or transferred

What schedules should be included in a Pocket Deed Of Trust?

1. Schedule A - Property Description: Detailed legal description of the property including metes and bounds or lot/block description

2. Schedule B - Title Exceptions: List of existing liens, encumbrances, or other exceptions to title

3. Schedule C - Payment Terms: Detailed schedule of payments or obligations if applicable

4. Schedule D - Required Insurance: Specific insurance requirements and minimum coverage amounts

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Trust Deed

Cost

Free to use
Industries

State Real Property Laws: Laws specific to the state where the property is located governing real estate transactions and property rights

State Recording Acts: State-specific laws governing the recording of deeds and other real estate documents in public records

State Trust Laws: Laws governing the creation and administration of trusts within the specific state

State Foreclosure Laws: State-specific regulations governing the foreclosure process and borrower rights

Truth in Lending Act (TILA): Federal law requiring disclosure of credit terms and standardizing the manner in which costs associated with borrowing are calculated and disclosed

Real Estate Settlement Procedures Act (RESPA): Federal law requiring lenders, mortgage brokers, and servicers to provide disclosures regarding the real estate settlement process

Dodd-Frank Act: Federal legislation that reformed various aspects of the financial industry, including mortgage lending practices

Statute of Frauds: Legal requirement that real estate transactions must be in writing to be enforceable

Legal Description Requirements: State-specific requirements for properly describing real property in legal documents

Notarization Requirements: State-specific rules governing the proper notarization of real estate documents

Recording Requirements: County-specific requirements for recording real estate documents in the public records

Delayed Recording Laws: Laws governing the implications and requirements of delayed recording of deeds

Fraudulent Transfer Laws: Laws preventing the transfer of property to avoid creditors or commit fraud

Bankruptcy Laws: Federal and state laws governing how property transfers are treated in bankruptcy proceedings

Tax Laws: Federal and state tax implications of property transfers and deed of trust arrangements

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