Virginia Assumption Agreement of Deed of Trust and Release of Original Mortgagors
Definition and meaning
The Virginia Assumption Agreement of Deed of Trust and Release of Original Mortgagors is a legal document that facilitates the transfer of a property mortgage obligation from the original borrower to a new purchaser. This agreement allows the new borrower, or purchaser, to assume the remaining debt on the mortgage and take over the associated obligations. This form is particularly important when a property is sold, as it ensures that the original borrower is released from further liability once the new parties have agreed to the terms.
How to complete a form
Completing the Virginia Assumption Agreement of Deed of Trust requires careful attention to detail. Here are the steps to follow:
- Begin by entering the names of the parties involved: the lender, the borrower(s), and the purchaser(s).
- Specify the loan amount and relevant details, such as the interest rate and monthly payment amounts, including principal, interest, taxes, and insurance.
- Each individual involved in the agreement must sign and date the document, ensuring that the necessary witnesses are present to validate the agreement.
- Finally, arrange for notarization of the document to authenticate it legally.
Be sure to review all sections for accuracy and completeness before finalizing the document.
Who should use this form
This form should be used by anyone who is involved in the sale of real estate where an existing mortgage is being assumed by a new buyer. Specifically, it is appropriate for:
- Original borrowers who wish to be released from their mortgage obligations.
- New buyers who are assuming the mortgage and need to legally acknowledge their responsibility.
- Lenders who need to formalize the assumption process and ensure that the original borrower is no longer held liable.
Key components of the form
The Virginia Assumption Agreement consists of several essential components, including:
- Identifying Information: Names and addresses of the lender, original borrower(s), and purchaser(s).
- Loan Details: The amount of the loan, interest rate, payment schedule, and any accrued fees.
- Assumption Clause: A statement acknowledging the new purchaser's assumption of the loan and the release of the original borrower.
- Signatures: Validation through signatures of all parties involved, along with witness signatures where required.
Common mistakes to avoid when using this form
When completing the Virginia Assumption Agreement, certain common pitfalls should be avoided:
- Incomplete Information: Failing to provide all necessary details can render the form invalid.
- Missing Signatures: Ensure that all required parties sign the document before submission.
- Notarization Issues: Neglecting to have the document notarized can lead to complications in its legal standing.
- Incorrect Dates: Verify that all dates are accurately recorded to avoid disputes later.
What to expect during notarization or witnessing
During the notarization process, the parties involved should be prepared to:
- Present valid identification to the notary public to verify their identities.
- Sign the form in the presence of the notary, ensuring that all signatures are completed simultaneously.
- Pay any applicable fees required by the notary for their services.
Witnesses may also need to be present to sign the document, confirming they observed the process of signing.
Form popularity
FAQ
Where to Find the Deed. In California, property deeds are in the County Recorders Office or Office of the Assessor-Recorder in the county in which the property is located. In some counties, if you request an older record, you may be redirected to yet another department that maintains archived records.
Party information: names and addresses of the trustor(s), trustee(s), beneficiary(ies), and guarantor(s) (if applicable) Property details: full address of the property and its legal description (which can be obtained from the County Recorder's Office)
Yes, there are key differences between the two. With a deed, you transfer the ownership of the property to one party. In contrast, a deed of trust does not mean the holder owns the property. In an arrangement involving a deed of trust, the borrower signs a contract with the lender with details regarding the loan.
The original deed is returned to the owner of the property from the office of the recorder after proper entry. The office of the Recorder of Deeds maintains a set of indexes about each deed recorded, for an easy search. Almost all states have a grantor-grantee index including a reference to all documents recorded.
Some owners are put off using solicitors duke to the deed of trust cost. Individuals can write out their own, and use someone else as a witness. However, this may have errors or not be a legally binding document. The investment of getting a deed of trust when buying a property is often worth it in the long term.
Typically, the lender will provide you with a copy of the deed of trust after the closing. The original warranty deeds are often mailed to the grantee after they are recorded. These are your original copies and should be kept in a safe place, such as a fireproof lockbox or a safe deposit box at a financial institution.
The person who owns the property usually signs a promissory note and a deed of trust. The deed of trust does not have to be recorded to be valid.
The property's title remains in the trust until the loan is paid off, or satisfied, then it is released from the trust. To complete the release, the lender prepares a deed of reconveyance. This document states that the conditions of the loan have been met and you have no further financial obligations to the lender.
A deed of release literally releases the parties to a deal from previous obligations, such as payments under the term of a mortgage because the loan has been paid off. The lender holds the title to real property until the mortgage's terms have been satisfied when a deed of release is commonly entered into.