North Carolina Deed of Trust
In North Carolina, a Deed of Trust is used instead of a mortgage to secure repayment of a new home loan.
- A Deed of Trust can be used for any real estate property except for agricultural farm land.
- A trustee, such as a title company, holds the title as security to ensure that the borrower makes the loan payments on time, pays the taxes, maintains and keeps the property in good condition, and fulfills all of its obligations.
- Just like with a mortgage, if the purchaser defaults in making any payments, the entire balance immediately becomes due and the trustee can sell the property.
- The Deed of Trust contains uniform covenants as required by federal laws, as well as specific clauses under North Carolina statutes.
- Any attorney's fees payable by a party under the Trust Deed must be reasonable.
Mortgage lenders in North Carolina should add the Deed of Trust to their document library. Get your copy now.