CA deed of trust/note question - Posted by Kristine-CA

Posted by Ronald * Starr (in No CA) on July 28, 2003 at 11:33:55:


Right. Occasionally I will see the note recorded or the terms of the note, but usually not. The deed of trust is a security instrument, as is a mortgage. The purpose of the security instrument is just to “tie” the promise to repay to the security, the property. It is recorded to establish priority and prevent other liens, judgments, or loans becoming of higher priority against the property. Often people do not even record the security instrument when they completely trust the borrower. Not a good practice, in my opinion, but it happens.

There is no reason for the world to know the terms of the note. So don’t record.

Try, the notes I have seen do not have a place for notarization. I think one could have them notarized anyway, if you were at all concerned that the makers were not the person they represented themselves to be.

You might want to take one of the courses at the community colleges that are intended for those who want to take the CA real estate statesperson test. They have several courses, including real estate finance, real estate economics, and real estate law. One evening a week for maybe 10 weeks?

Good Investing*Ron Starr

CA deed of trust/note question - Posted by Kristine-CA

Posted by Kristine-CA on July 28, 2003 at 10:26:10:

Greetings all.

When executing a note secured by a deed of trust, is only the deed of trust recorded? When reading bank DOTs it appears that the note terms are incorporated into the deed of trust. But for private individuals, I mostly see only the deed of trust recorded. Does the note typically stay unrecorded? I also see that prommissary note docs are not notarized. Is this typical as well?

Not to worry, I won’t be doing any notes without legal advice. But I’d like to understand how the docs work.

Thanks. Sincerely, Kristine