Deed Of Trust With Assignment Of Rents In Los Angeles
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FAQ
Final answer: The assignment of rents clause primarily benefits the lender or financier in a mortgage arrangement. However, in some situations, tenants can indirectly benefit from the clause by ensuring continuation of essential services.
The assignment of rents clause is a provision in a mortgage or deed of trust. It gives the lender the right to collect rents from mortgaged properties if the borrower defaults. All incomes and rents from a secured property flow to the lender and offset the outstanding debt. Clearly, this benefits the lender.
ASSIGNMENT OF RENTS - Trustor hereby assigns and transfers to Beneficiary all right, title and interest in rents generated by the property, including rents now due, past due, or to become due under any use of the property, to be applied to the obligations secured by this Deed of Trust.
It must: Be in writing. Have an amount which matches the amount on the Note(s) Have a date which matches the date on the Note(s) Have a complete legal description of the property(s) being encumbered (street address only is not sufficient)
Record the Signed Documents at the County Recorder's Office Take the original signed and notarized Deed of Trust and Promissory Note to the County Recorder's Office for the county where the property is located. In Sacramento, this is at 3636 American River Drive, Ste. 110, Sacramento CA 95864.
In California, a deed of trust must come with security, typically a promissory note. To be valid, a deed of trust must be (1) in writing, (2) with a description of the property, and (3) signed by the trustor of the deed of trust.
