DEED OF TRUST

Deed of Trust
Save money and secure a loan using your real estate as collateral with this Deed of Trust. This
attorney-drafted deed is a legal document whereby one party transfers all of their right, title and
interest in a property to a trustee. Typically, a Deed of Trust is used to secure a loan on the real
property. This document gives a lender a security interest against the property.

Who needs this document?

 Any property owner who hopes to secure a loan using real estate as collateral.
 Any lender who wants to add security to a loan in the form of an interest in property.
 Deed of Trust

DEED OF TRUST
THIS DEED OF TRUST (“Deed of Trust”), made this _____ day of _______, 2_____
by and between __________________ (the “Borrower”) and _______________ (the “Trustee”).

WHEREAS the Borrower is indebted to ____________________ (the “Lender”) in the

AND WHEREAS it has been agreed between the Borrower and the Lender that the Loan
shall and will be secured by the conveyance of the real property municipally known as
________________ (the “Property”);

NOW, THEREFORE, in consideration of the premises and for the consideration of

1. The Borrower hereby acknowledges and agrees that it shall keep the Property in a good
state of repair and shall comply with all laws of the applicable jurisdiction in respect to the
Property.

2. The Borrower hereby agrees that it shall pay any and all taxes that are due and owing or
that may become due and owing in respect of the said Property. In the event the Borrower fails
to pay any and all taxes that are due and owing, the Lender shall have the option to pay the
amounts outstanding in respect of taxes for the said Property and any amounts paid by the
Lender in respect of taxes for the said Property shall be added to the principal amount of the
Loan.

3. The Borrower hereby represents and warrants to the Trustee that the Borrower owns the
Property free and clear of all liens and encumbrances and that the Borrower has the full right and
power to transfer the Property.

4. The Borrower and the Trustee hereby covenant and agree that in the event the Trustee
dies or becomes incapacitated and unable to act as Trustee or any reason whatsoever, the Lender
shall have the full right and authority to appoint a substitute Trustee, and such substitute Trustee
shall have all of the rights, powers and authority as if such substitute Trustee was the original
appointed Trustee.

5. In the event the Trustee should be name as a party to any legal proceeding, the Trustee
shall have the right and authority to retain an attorney for representation for such legal
proceeding. The Lender shall pay any and all reasonable attorney fees for legal representation in
respect of such legal proceeding and the costs of such legal representation shall be added to Loan
and secured under this Deed of Trust.
 3

6. This Deed of Trust shall not be subordinated to any other debts, liens or encumbrances of
any third party without the prior written consent of the Lender.

7. The Borrower hereby agrees that the Lender shall have the right at any time, with
reasonable notice to the Borrower, to inspect the Property.

8. No sale of the Property and no forbearance on the part of the Lender and no extension of
the time for the repayment of the debt secured hereby given by the Lender shall operate to
release, discharge, modify, change, or affect the original liability of the Borrower either in whole
or in part. The Lender can, in its complete discretion, waive any default, and can waive by
written instrument, in advance, any individual action which might constitute a default.

9. In the event the Borrower is in default of the Loan, the Lender shall have the right to
immediately demand payment in full of the Loan secured by this Deed of Trust.

10. Any notice required or permitted to be given hereunder may be effectively given by letter
delivered either by personal delivery, registered mail or by electronic means, addressed to the recipient
as follows:

in the case of the Borrower:

in the case of the Trustee:

Fax: (___)

in the case of the Lender:

Fax: (___)
 4

and, in each case, mailed by ordinary mail, postage prepaid, or delivered to that address; and, if
mailed as aforesaid, any such notice shall have been deemed to have been given on the fifth (5th)
business day following that on which the letter containing the notice was posted. If any notice is
given by electronic communication, such notice shall be deemed to be delivered on the day of
transmittal thereof if given during normal business hours of the recipient and on the next business
day if given after normal business hours. Any Party may change its address for service from time to
time by notice given in accordance with the foregoing.

11. The Borrower hereby acknowledges and agrees that it shall maintain at all times,
insurance on the Property, in an amount which is not less than the amount of the outstanding
Loan secured by this Deed of Trust and shall name the Lender as loss payee. The Borrower
hereby further acknowledges and agrees that it shall maintain insurance in an adequate amount
for any improvements made to the Property by the Borrower. The Borrower shall be solely
liable and responsible for the payment of all premiums which may become due and owing in
respect of the insurance policy in place on the Property and shall provide evidence of such
insurance coverage to the Lender.

12. In the event the Borrower files for bankruptcy pursuant to the bankruptcy laws of the
applicable jurisdiction, the Lender shall have the option to declare all amounts owing to it by the
Borrower to be immediately due and payable without prior notice to the Borrower. Any and all
attorney fees and related costs and expenses incurred by the Lender as a result of the filing of
bankruptcy of the Borrower shall be deemed to be additional indebtedness of the Borrower and
shall be secured by this Deed of Trust.

13. The Borrower hereby represents and warrants to the Lender as follows:

(a) the Borrower shall keep the Property free and clear of any hazardous materials;

(b) the Borrower shall keep the Property in compliance with all environmental laws
of the applicable jurisdiction; an

(c) the Borrower shall keep the Property free and clear of any liens or encumbrances.

14. The Borrower hereby agrees to indemnify and hold the Lender harmless from any loss,
damage, injury and claims incurred by the Lender, as a result of any of the representations and
warranties made by the Borrower being untrue or incorrect.

15. This Deed of Trust shall be governed by the laws of the Province/State of ____________.
 5

IN WITNESS WHEREOF, the Borrower has executed this Deed of Trust on the
day and year first written above.

Witness as to the Borrower’s signature BORROWER

“All forms and documents from DocStoc are provided “as is” without warranty of any kind,
express or implied. DocStoc does not provide any legal advice, and assumes no responsibility
for the enforceability or effectiveness of its documents. Users should consult with a lawyer if
there is any question as to the appropriateness of the documents for their particular situation.”