Can this agreement be signed electronically?

Yes, most charge agreements can be electronically signed where parties consent and state recording offices accept e-recordings. Federal ESIGN (15 U.S.C. ch. 96) and UETA support electronic signatures; confirm local recorder rules and any exceptions for particular instrument types.

Is a notary required to validate the charge?

Notary requirements vary by state and by instrument type. Many counties expect a notary acknowledgment for deeds and charges; some states also require witnesses. Check the county recorder and state statute before execution.

How do I record the charge after signing?

Deliver the executed and acknowledged instrument to the county recorder where the property is located, pay the recording fee, and obtain the instrument number. Some counties accept electronic submissions while others require certified paper copies.

Who must sign the agreement?

Authorized representatives of the grantor (property owner) and the chargee (lender) must sign. For entities, ensure signatory authority is documented. If a third party holds power of attorney, attach executed POA documentation.

How is the charge released after repayment?

Record a release, reconveyance, or satisfaction instrument executed by the chargee and recorded at the same county recorder’s office. Include the original instrument reference to clear title.

What records should I keep and for how long?

Retain the recorded instrument and closing files for the agreement term plus post-termination retention: at least 3 years for tax purposes (IRC §6501(a)), commonly 7 years for post-termination preservation, and 6 years for HIPAA-covered records where applicable (45 CFR §164.530(j)).

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Legal Charge of Interest Agreement

Legal Charge of Interest Agreement

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LEGAL CHARGE OF INTEREST AGREEMENT

This Legal Charge of Interest Agreement (the Agreement) is made as of the day of , by and between Chargee Name: , with principal address: (hereinafter referred to as the "Chargee"), and Chargor Name: , with principal address: (hereinafter referred to as the "Chargor").

RECITALS

WHEREAS, the Chargor is the legal and beneficial owner of certain right, title and interest described herein and desires to grant to the Chargee a legal charge and security interest in such interest to secure payment and performance of certain obligations; and

WHEREAS, the Chargee has agreed to provide financial accommodation or other credit accommodations to the Chargor upon the terms and subject to the charges, representations, covenants and remedies set forth in this Agreement; and

WHEREAS, the parties intend that this Agreement create a legal charge over the Chargor's interest described below and that such charge constitute a continuing security for all Secured Obligations (as defined below).

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the following meanings:

"Charged Interest" means all right, title and interest of the Chargor in and to the asset(s) described in Section 3 and in the charged interest description field below, whether presently existing or hereafter acquired, including all proceeds, products and accounts relating thereto.

"Secured Obligations" means all present and future obligations, liabilities and indebtedness of the Chargor to the Chargee, whether absolute or contingent, principal, interest, fees, costs, expenses of enforcement and other amounts owing under or in connection with any loan, credit facility, guarantee or other agreement between the parties.

2. GRANT OF CHARGE

As security for the prompt payment and performance of the Secured Obligations, the Chargor hereby charges by way of a legal charge in favor of the Chargee, to the fullest extent permitted by law, all of the Chargor's right, title and interest in and to the Charged Interest. The charge granted hereunder is a continuing charge until the Secured Obligations have been irrevocably satisfied in full.

3. OBLIGATIONS SECURED; PRINCIPAL AMOUNT

The Secured Obligations include, without limitation, all indebtedness, obligations and liabilities of the Chargor to the Chargee arising under or in connection with any agreement between the parties in an aggregate principal amount not to exceed .

4. DESCRIPTION OF CHARGED INTEREST

The Charged Interest subject to this charge is described as follows. The description below is intended to identify the interest charged with sufficient particularity to vest the Chargee with the rights and remedies set forth in this Agreement:

5. REPRESENTATIONS AND WARRANTIES

The Chargor represents and warrants to the Chargee that: (a) the Chargor is the lawful owner of the Charged Interest and has full power, authority and legal capacity to grant the charge herein; (b) the Charged Interest is free and clear of any prior liens, security interests or encumbrances other than those disclosed in writing to the Chargee; (c) the execution and performance of this Agreement have been duly authorized by all necessary action of the Chargor; and (d) this Agreement constitutes a valid, binding and enforceable charge against the Charged Interest in accordance with its terms.

6. COVENANTS

Until the Secured Obligations have been finally and indefeasibly paid in full, the Chargor covenants that it will: (a) not create, incur or permit to exist any lien, charge or encumbrance on the Charged Interest other than this charge; (b) promptly execute, deliver and record such further instruments and take such other actions as the Chargee may reasonably request to perfect, protect or preserve the Chargee's rights; and (c) not transfer, sell, assign or otherwise dispose of the Charged Interest except with the prior written consent of the Chargee.

7. EVENTS OF DEFAULT

The occurrence of any of the following shall constitute an Event of Default: (a) failure by the Chargor to pay any amount when due under the Secured Obligations; (b) material breach by the Chargor of any representation, warranty or covenant contained in this Agreement; (c) insolvency, bankruptcy, appointment of a receiver for the Chargor, or any analogous proceeding; or (d) any voluntary or involuntary disposition of the Charged Interest in violation of this Agreement.

8. REMEDIES

Upon the occurrence of an Event of Default, the Chargee may, to the fullest extent permitted by applicable law, exercise all rights and remedies of a secured party, including without limitation the right to enforce the charge, take possession of the Charged Interest, collect proceeds, sell or otherwise dispose of the Charged Interest at public or private sale, apply proceeds to the Secured Obligations, seek appointment of a receiver and pursue any other judicial or non-judicial remedies available. The Chargee may exercise remedies cumulatively or concurrently and shall be entitled to recover from the Chargor all reasonable costs and expenses of enforcement, including attorneys' fees.

9. PRIORITY; SUBORDINATION

The parties intend that the charge created by this Agreement shall have the priority described herein. Unless otherwise agreed in writing, this charge shall be prior and superior to any subsequently granted security interests. The Chargor shall not cause any subsequent encumbrance to have priority over this charge without the prior written consent of the Chargee.

10. FURTHER ASSURANCES

The Chargor shall, at its expense, execute and deliver all further documents, instruments and notices and do all other things reasonably necessary or desirable to perfect, preserve, maintain and enforce the Chargee's rights and remedies under this Agreement.

11. NOTICES

All notices, demands or communications required or permitted under this Agreement shall be in writing and delivered to the parties at the addresses set forth below or at such other address as either party may designate by notice to the other:

Chargee Notices Address: Chargor Notices Address:

12. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles. The parties submit to the exclusive jurisdiction of the courts of such state for resolution of disputes arising under this Agreement.

13. ENTIRE AGREEMENT; SEVERABILITY

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. If any provision of this Agreement is determined to be invalid, illegal or unenforceable, such provision shall be severed and the remaining provisions shall remain in full force and effect.

14. AMENDMENT; WAIVER; COUNTERPARTS

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom enforcement is sought. No delay or failure by the Chargee to exercise any right shall constitute a waiver of that right. This Agreement may be executed in counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

The parties acknowledge and agree that this Agreement creates a legal charge against the Charged Interest and intend that such charge be effective and enforceable in accordance with its terms.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

Chargee (Printed Name):

By:

Date:

Chargor (Printed Name):

By:

Date:

What the Legal Charge of Interest Agreement Is and when it’s used

A Legal Charge of Interest Agreement is a written instrument that creates a security interest or charge in specified real property or collateral to secure repayment of a debt or performance of an obligation. It identifies the parties (grantor/charger and chargee), describes the property or interest being charged, specifies the secured obligation, and states remedies on default. Charges are commonly recorded in county land records or analogous registries to give public notice and establish priority against later claims. Electronic execution and storage can be used where permitted by ESIGN (15 U.S.C. ch. 96) and state law.

Why a clear, enforceable charge matters

A properly drafted and recorded Legal Charge of Interest Agreement secures creditor rights, clarifies borrower obligations, and preserves lien priority. Clear terms reduce disputes over enforceability and streamline enforcement steps if the secured obligation is not met.

Who typically prepares or signs this agreement

Parties should involve counsel or a closing agent where local recording rules, priority disputes, or statutory formalities may affect validity.

Commercial lenders and banks that need collateralized repayment security for loans and credit facilities.
Property owners and borrowers who grant an interest in land to secure financing or obligations.
Title companies, escrow agents, and closing attorneys involved in recording and priority searches.

Roles that sign and manage the agreement

Lender — Loan Officer

A lender or loan officer arranges loan terms, ensures the charge description matches the loan documents, and typically coordinates recording. They must confirm borrower identity, lien priority, and any subordination or release mechanics with counsel.

Grantor — Borrower

The borrower (grantor) provides the legal name, executes the charge, and must deliver any supporting materials (e.g., title evidence). Accurate legal names and acknowledgment of the secured amount are critical to avoid future disputes.

Core elements every professional Legal Charge of Interest Agreement includes

A robust agreement combines precise identification, enforceable security language, and clear remedies. The following features reduce ambiguity and support recording and enforcement.

Parties

Full legal names for grantor(s) and chargee(s), including entity type and state of formation where applicable, to avoid identity disputes during recording.

Property Description

A metes-and-bounds or recorded-plat reference that uniquely identifies the parcel or collateral interest to be charged for public-record acceptance.

Secured Obligation

Clear statement of the principal amount, credit facility reference, or obligation being secured, including reference to underlying loan documents.

Interest and Payments

Interest rate, payment schedule, and applicable default interest or late fees spelled out to avoid ambiguity about amounts due.

Default Remedies

Remedies on default (acceleration, foreclosure, or trustee sale) and any cure periods, cross-default language, and deficiency rights.

Recording & Release

Instructions for recording at the county recorder’s office and conditions for release or reconveyance once obligations are satisfied.

Step-by-step: completing and putting the charge on record

Follow these sequential actions to prepare, execute, and record a Legal Charge of Interest Agreement correctly.

01

Prepare draft: Assemble loan docs, title report, and legal description.
02

Populate fields: Complete names, amounts, dates, and county information.
03

Sign and notarize: Execute in presence of required witnesses or notary.
04

Submit to recorder: Record with the county recorder and obtain instrument number.

Typical digital workflow settings for e-execution and recording

Configure signatures, authentication, and routing to match legal requirements and local recording practices.

Field	Configuration
Signature method	eSign or wet signature with notary
Authentication	Email + SMS code or RON identity proofing
Field validation	Require MM/DD/YYYY, numeric amounts
Routing order	Lender → Borrower → Notary → Recorder

How eSigning and eSubmission typically flows

A concise view of a standard digital execution and recording sequence for charged instruments.

Upload document: Add final agreement and attachments.
Place signature fields: Assign roles and required fields.
Send to signers: Deliver by email or secure link.
Record instrument: Submit recorded copy to county office.

Platform capabilities and file requirements for e-execution

Confirm the county recorder accepts electronically signed and submitted documents and verify whether recorded instruments require a certified paper copy for indexing.

Integrations: Salesforce, NetSuite, Box integrations available
File formats: PDF, DOCX, and compatible PDF/A outputs
Authentication: Email, SMS, KBA, or RON identity proofing

Key risks and consequences of incomplete or incorrect charges

Unrecorded lien: Can lose priority to later-recorded creditors

Incorrect names: Mismatches impair enforceability and recording

Missing notarization: May invalidate instrument in some jurisdictions

Improper interest terms: May violate usury laws or be unenforceable

Statute of Frauds: Oral charges are unenforceable in many cases

Tax reporting: Incorrect treatment can trigger IRS or state issues

Common mistakes to avoid when preparing the agreement

Using informal or nonstandard property descriptions that the recorder rejects, causing delays and potential re-execution.
Failing to confirm the borrower’s legal entity name and authority, resulting in invalid signatures or title defects.
Omitting release mechanics or failing to record reconveyance, which can cloud title after repayment.
Assuming all counties accept purely electronic recording without verifying local recorder acceptance and required formats.

Comparison of common eSignature providers for executing charge instruments

Platform selection affects authentication, compliance options, and per-user costs. The table compares key cost and compliance dimensions across vendors.

	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 free trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	No cap	No cap	No cap

Frequently asked questions about Legal Charge of Interest Agreements

Answers to common practical and legal questions to help with execution, recording, and enforceability.

Need help? Contact support

Can this agreement be signed electronically?
Yes, most charge agreements can be electronically signed where parties consent and state recording offices accept e-recordings. Federal ESIGN (15 U.S.C. ch. 96) and UETA support electronic signatures; confirm local recorder rules and any exceptions for particular instrument types.
Is a notary required to validate the charge?
Notary requirements vary by state and by instrument type. Many counties expect a notary acknowledgment for deeds and charges; some states also require witnesses. Check the county recorder and state statute before execution.
How do I record the charge after signing?
Deliver the executed and acknowledged instrument to the county recorder where the property is located, pay the recording fee, and obtain the instrument number. Some counties accept electronic submissions while others require certified paper copies.
Who must sign the agreement?
Authorized representatives of the grantor (property owner) and the chargee (lender) must sign. For entities, ensure signatory authority is documented. If a third party holds power of attorney, attach executed POA documentation.
How is the charge released after repayment?
Record a release, reconveyance, or satisfaction instrument executed by the chargee and recorded at the same county recorder’s office. Include the original instrument reference to clear title.
What records should I keep and for how long?
Retain the recorded instrument and closing files for the agreement term plus post-termination retention: at least 3 years for tax purposes (IRC §6501(a)), commonly 7 years for post-termination preservation, and 6 years for HIPAA-covered records where applicable (45 CFR §164.530(j)).

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