How to Fill Out the Deed of a Trust to Secure Assumption

By Cindy DeRuyter, J.D.

How to Fill Out the Deed of a Trust to Secure Assumption

By Cindy DeRuyter, J.D.

A deed of trust is used by certain states in the place of mortgage deeds to secure the mortgagee's interest in the property. If the homeowner defaults on their mortgage, the deed of trust gives the mortgage company the legal ability to foreclose on the property without going to court to do so.

Person signing document

If you live in a state that uses these deeds, you may need to sign one to secure assumption for a mortgage after a divorce or when you need to transfer property subject to an existing deed. This can give you a security interest in the property if your ex-spouse defaults on the mortgage after the legal transfer.

1. Obtain the necessary forms.

Your state might have a standard form, or it may simply provide minimum requirements to create a valid deed of trust to secure assumption.

You could choose to work with an attorney licensed in your state to prepare this document to secure assumption. If you choose to do so, the attorney should provide a form that meets your state's legal requirements and includes legal language designed to protect you. Alternatively, you could purchase a form online or from an office supply store that sells legal forms.

2. Provide information about the grantor, the trustee, and the beneficiary.

The language of the deed of trust to secure assumption can be confusing if you don't understand three different roles:

  • Grantor: The grantor is the person assuming title to the property. If you transfer the property to your ex-spouse in a divorce, the grantor is your ex-spouse. Provide the grantor's name and mailing address on the form.
  • Trustee: The trustee is the organization that holds title to the house until the grantor pays off the mortgage. You can likely find the trustee's name and mailing address on your original deed of trust.
  • Beneficiary: The beneficiary is the person who receives a security interest in the property. If the grantor defaults on the loan, the beneficiary is still liable for the outstanding mortgage but may have some protection under the deed of trust to secure assumption.

3. Document information about the note and deed of trust assumed.

Next, provide information about the original deed of trust, including the date, amount assumed, lender, original payee and beneficiary, and legal description for the real estate. The legal description is different from the property address; it identifies the property according to the underlying land survey or plat. The legal description should appear on the existing document. Simply copy it exactly.

4. The grantor should read the form carefully before signing.

Generally, the grantor is the only party who needs to sign a deed of trust to secure assumption. If you are the grantor, read through the document carefully to understand its provisions. You may wish to retain an attorney to help you understand any provisions that are not clear. The grantor must sign the form in front of a notary public.

5. Record the document.

Record, or file, the deed of trust to secure assumption with the applicable county recorder or registrar of titles.

Because of the complexity involved with real estate matters, you may want to hire a lawyer to assist with the transaction. An attorney can advise you on whether a standard real estate deed makes sense or if you should use a special warranty deed or other document with the deed of trust to secure assumption.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.