Legal Documentation

CONTRACTS FOUR ESSENTIAL ELEMENTS: –PARTIES TO A CONTRACT MUST BE LEGALLY COMPETENT –SUBJECT MATTER MUST BE LEGAL AND PROPER –MUST BE EVIDENCE OF AN OFFER AND AN ACCEPTANCE –MUST BE CONSIDERATION

REAL PROPERTY THE DEED OF TRUST IS THE INSTRUMENT USED TO ESTABLISH A SECURITY INTEREST IN REAL PROPERTY IT IS A THREE PARTY INSTRUMENT –LENDER –BORROWER –TRUSTEE

WARRANTY DEED THE INSTRUMENT THAT TRANSFERS TITLE IN REAL PROPERTY THE SELLER IS GUARANTEEING THAT THE TITLE IS FREE AND CLEAR OF ENCUMBRANCES

QUITCLAIM DEED THE SELLER IS AGREEING ONLY TO CONVEY ANY INTEREST IN THE PROPERTY, BUT NOT GUARANTEEING THAT THE PROPERTY IS FREE OF ENCUMBRANCES BY OTHERS

OTHER INSTRUMENTS ABSTRACT - ALL DEEDS, MORTGAGES, FORECLOSURES, AND OTHER PERTINENT FACTS THAT AFFECT TITLE TO LAND. TITLE INSURANCE - USED IN PLACE OF AN ABSTRACT.

A LIEN IS A CLAIM OR ENCUMBRANCE ON A PROPERTY. FORECLOSURE IS THE PROCESS UNDER WHICH LENDERS EXERCISE THEIR RIGHTS TO HAVE SECURITY SOLD AND THE PROCEEDS APPLIED TO THE OUTSTANDING LOAN BALANCE.