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Deed of Trust and Assignment of Rents

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DEED OF TRUST AND ASSIGNMENT OF RENTS

This Document Provided by Fidelity National Title

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO

SPACE ABOVE THIS LINE FOR RECORDER’S USE

This Deed of Trust, made this day of , between herein called Trustor, whose address is , and herein called Beneficiary, whose address is and Fidelity National Title, A California corporation, herein called Trustee.

Witnesseth: THAT TRUSTOR IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO TRUSTEE IN TRUST, WITH POWER OF SALE, that property in County, California, described as:

TOGETHER WITH the rents, issues and profits thereof, SUBJECT HOWEVER, to the right, power and authority given to and conferred upon Beneficiary by paragraph (11) of the provisions set forth below to collect and apply such rents, issues and profits.

For the Purpose of Securing:

1. Performance of each agreement of Trustor incorporated by reference or contained herein.

2. Payment of the indebtedness evidenced by one promissory note of even date herewith, and any extension or renewal thereof, in the principal sum of $ executed by Trustor in favor of Beneficiary or order.

3. Payment of such further sums as the then record owner of such property hereafter may borrow from Beneficiary, when evidenced by another note (or notes) reciting it is so secured.

To Protect the Security of This Deed of Trust, Trustor Agrees:

(1) That Trustor will observe and perform said provisions; and that the reference to property, obligations, and parties in said provisions shall be construed to refer to the property, obligations and parties set forth in this Deed of Trust.

(2) To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefore; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon, not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violations of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumeration's herein not excluding the general.

(3) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary.

(4) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to record this Deed.

(5) To pay; at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or a part thereof, which appear to be prior to superior hereto; all costs, fees and expenses of this Trust.

(6) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereon, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded.

(7) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary.

(8) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay.

(9) That at any time or from time to time, without liability therefore and without notice, upon written request of Beneficiary and presentation of this deed and said Note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement therein; or join in any extension agreement or any agreement subordinating the lien or charge hereof.

(10) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said Note to Trustee for cancellation and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the property held hereunder.

(11) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority during the continuance of these Trusts, to collect the rents, issues and profits of said property.

(12) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable.

(13) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder.

(14) That this Deed applies to, insures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns.

(15) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law.

The undersigned Trustor request that a copy of any Notice of Default and of any Notice of Sale hereunder be mailed to him at his address hereinbefore set forth.

Dated:

STATE OF CALIFORNIA

COUNTY OF }SS.

On before me, (insert name) Notary Public,

personally appeared

who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/ are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

(This area for official notarial seal)

MAIL TAX STATEMENTS AS DIRECTED ABOVE

Enter text✕

What the Deed of Trust and Assignment of Rents Does

A Deed of Trust and Assignment of Rents is a secured real estate instrument that creates a lien on property and assigns income from that property to a trustee for the benefit of a lender. It names the trustor (borrower), trustee, and beneficiary (lender), and sets out the loan terms, remedies on default, and the lender’s right to collect rents if the borrower defaults. The document is typically recorded in the county recorder’s office where the property is located to perfect the lien and establish priority against later claims.

Why this document matters for secured lending

The Deed of Trust with an Assignment of Rents secures repayment and gives the lender an immediate contractual right to rental income upon default, often accelerating loss mitigation and preserving property cash flow.

Why this document matters for secured lending

Typical users and roles

These parties most commonly prepare, review, or sign a Deed of Trust and Assignment of Rents.

  • Lenders and mortgage servicers who need a lien and rent assignment to secure commercial or residential investment loans.
  • Borrowers or trustors on financed property who provide collateral and agree to rent assignment provisions.
  • Trustees and title agents who handle notarial acknowledgment, trustee powers, and recording logistics.

Roles may overlap: title companies often coordinate notarization and recording, while counsel reviews enforceability and priority issues.

Core elements found in a professional Deed of Trust and Assignment of Rents

A complete document combines loan mechanics with property identification, trustee powers, remedies, and rent-assignment language; each element affects enforceability and the lender’s post-default options.

Parties

Identifies trustor (borrower), trustee, and beneficiary (lender) including legal names and capacities; correct identification avoids later challenges.

Legal Description

Full metes-and-bounds or recorded plat reference that precisely identifies real property for recording and title search accuracy.

Loan Terms

States principal, interest, maturity, and default definitions; ties the security interest to the underlying obligation secured.

Assignment of Rents

Explicit clause assigning rents, issues notices to tenants, and authorizes the lender to collect rents upon default and apply them to unpaid debt.

Trustee Powers

Specifies trustee’s authority to sell, lease, or enter property under defined conditions; critical for non-judicial foreclosure mechanics in many states.

Recording/Notary

Acknowledgment and signature blocks for notarization and instructions for county recording to perfect lien priority.

Essential data points to include

Recording County: County name
Legal Description: Lot/parcel text
Trustor Identity: Full legal name
Beneficiary Identity: Lender legal name
Loan Amount: Principal value
Effective Date: MM/DD/YYYY

Step-by-step completion checklist

Follow these sequential steps to prepare, execute, and record a Deed of Trust and Assignment of Rents correctly.

  • 01
    Gather documentation: Collect title report, IDs, and loan documents
  • 02
    Complete form: Fill all fields and attach exhibits
  • 03
    Notarize signatures: Sign before a notary or RON-certified notary
  • 04
    Record and distribute: File with county recorder and share copies

Where the executed document goes next

After execution, the Deed of Trust and Assignment of Rents must be processed and routed to appropriate recipients for perfection and operational use.

  • County Recorder: Record the original document to perfect lien
  • Lender File: Retain recorded copy in loan servicing file
  • Trustee Records: Provide trustee with executed and recorded copy
  • Tenant Notice: Deliver rent-assignment notice to tenants when required

Suggested digital workflow settings

Configure your digital signing and recording workflow with these standard settings to reduce errors and delays.

Field Configuration
Signature Field Required for trustor, trustee, beneficiary
Notary Block Place on final page for acknowledgment
Assignment Clause Flag as mandatory text and initial
Routing Order Trustor -> Trustee -> Lender

Digital signing and file format considerations

Ensure the platform you use supports notarization, secure storage, and PDF/A exports for recorded copies.

  • Accepted Formats: PDF, DOCX
  • Remote Notarization: Audio-video + credentialing
  • Authentication: Email, SMS, or advanced methods

Confirm the vendor supports county-acceptable PDF output, audit trails, and any industry integrations you rely on for title or loan servicing.

Consequences of mistakes or omissions

Loss of Priority: Lien subordinated
Recording Rejection: Filing returned or delayed
Assignment Failure: Rents not collectible
Enforceability Risk: Remedies limited
Title Defect: Clouded title
Increased Costs: Litigation or re-recording

Common preparation and execution pitfalls

  • Incorrect legal description or parcel ID leading to recorder rejection and delayed perfection of lien.
  • Missing or improper notarization or trustee acceptance that prevents non-judicial remedies in some jurisdictions.
  • Failure to provide tenants with required notice or to properly assign rents, reducing the lender’s ability to collect income.
  • Not recording promptly after closing, creating priority disputes with later-recorded liens or purchasers.

Timing and processing expectations

Key timeframes depend on state law and the parties’ agreements; plan for immediate post-closing recording and state-specific foreclosure timelines.

Recording After Closing:

Record as soon as possible to establish priority

Notary Timing:

Signatures must be notarized at execution or per state rules

Foreclosure Window:

Varies by state; trustee sale notice periods differ

Tenant Notice:

Deliver assignment notice per state or lease terms

Document Delivery:

Provide recorded copies to lender and trustee promptly

Key milestones from execution to enforcement

A sequential view of major milestones clarifies what must occur and when to preserve rights and remedies.

01

Execution

Parties sign and notarize the instrument

02

Recording

File with county recorder to perfect lien

03

Default Declaration

Borrower breach triggers lender remedies

04

Rent Collection

Lender or trustee collects rents per assignment

Real-world usage examples

These short examples show how practitioners apply a Deed of Trust and Assignment of Rents in operational contexts.

Optica Ventures — COO

When closing investment property loans we standardize recorded deeds for consistency and title clarity.

  • The assignment of rents provision preserves cash flow during default.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers." — Brian Fitzgibbons

Martin Properties — Founder

A recorded deed plus rent assignment allowed rapid remedial collection on a distressed asset.

  • Timely recording prevented junior lien disputes.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently." — Tim Martin

Representative users and their perspectives

Brian Fitzgibbons, COO

Optica Ventures uses recorded deeds of trust and rent assignments across portfolio transactions to ensure lender remedies and to streamline tenant notice processes. Their operations rely on consistent forms, accurate legal descriptions, and rapid distribution of recorded copies to investors and servicers.

Tim Martin, Founder

Martin Properties applies deeds of trust with rent assignments on small multi-family acquisitions to protect cash flow. The company emphasizes prompt notarization and recording so that rent assignment remedies remain viable immediately upon default.

eSignature provider comparison for executing deeds and rent assignments

A concise vendor comparison for common capability and pricing dimensions; signNow is listed first per platform ordering guidelines.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies Varies Varies

Frequently asked questions and answers

Answers to common legal, notarization, and recording questions about Deeds of Trust and Assignment of Rents.


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