Demand Letter: A Comprehensive Guide

It should come as no surprise that life costs money. Sometimes, you may take out a loan to cover big expenses, or simply stay afloat. Borrowing money is a standard part of most peoples lives at one point or another. However, paying off that money is another story. Every now and then a borrower who defaults on their loan payments may receive a demand letter. What is a demand letter? What do I do if I get one? In this article, we will answer all of these questions and more.

What is a Demand Letter?

When someone borrows money (i.e. takes out a loan) there are generally very specific parameters set for paying said money off. Such as:

The amount of money borrowed
When full payment is due
The due dates of each payment
Any fees or interest charges associated with the loan terms

Unfortunately, sometimes a borrower fails to meet the expectations of their loan agreement. When that happens, the lending party will send a demand letter to the borrower. A demand letter is a formal document sent to borrower requesting an outstanding debt be paid. Now, demand letters do not go in the mail the day after a due date passes. Instead, the lending authority will usually send several other notifications of past due payments. Moreover, some lenders will have representatives call the debtor to collect payment. If these attempts are met with silence, a lender will draw up and send a formal demand letter.

When Do I Send a Demand Letter?

Borrowing money can be a murky exchange. Notably so, when the transaction takes place amongst friends or family. Very often, the borrower may hope, or even expect, for the lender to forget about the transaction. Conversely, the borrower may constantly make empty promises to repay the lender. Perhaps, claiming they are waiting on that one big check or will have the money any day now.

This is where a demand letter comes in. The lender will write a letter detailing the specifics of the loan. Should the debtor not pay what is owed, the lender will elevate the matter to small claims court. This ultimatum raises the stakes considerably. One out of every three demand letters results in speedy delivery of payment. Paying the debt is a far better alternative than wasting time and money going through the court system.

Examples of Demand Letter Causes

Demand letters are sent when a financial debt is owed. For example, if your friend borrows money from you to buy a car and hasn’t yet paid you back.

However, demand letters are also sent in a number of non-loan situations. For example, if a contractor improperly installs wiring in your home. You can send a demand letter requesting that they fix the issue at no further cost to you. Furthermore, demand letters are often used in cases of personal injury. In this case, the demand letter may request retribution from the person or entity that is responsible for the injuries. On the other hand, a demand letter can be used to request aid from an insurance company to cover medical expenses associated with the said injury.

The aforementioned examples are simply the tip of the proverbial iceberg. Demand letters relate to all sorts of different claims and situations.

Demand Letter Sample – How to Write a Demand Letter

To be clear – a demand letter is a big step towards filing a lawsuit. Therefore, the letter is a legal document and should be written accordingly. Here are some best practices when drafting a proper demand letter:

Include the Details of Debt – This is more than just the amount of money owed. Both the lender and the borrower are likely aware of the situation that led to this letter. However, should the matter end up in small claims court, having a detailed description in the demand letter will help the judge understand, and appropriately rule on, the case
Be Cordial – Getting to the point where a demand letter is necessary is a bumpy road. More than likely, the lender is frustrated with the borrower. However, keep in mind that people tend to react in a similar fashion to how they are approached. Anger leads to more anger and malice. Therefore, aim to be calm and polite in your letter. You are more likely to be met with a lucrative response.
Request a Definitive Resolution – Specifically lay out the terms of the letter. How much money is owed? When is the payment due? What services are requested?
Keep it Professional – Handwritten letters are lovely. Who doesn’t love getting a handwritten card or letter in the mail? However, a demand letter should not be confused with a love note or handwritten exchange with a pen pal from summer camp. A demand letter should be a typed, professional document.
Take it to the Courts – Not the basketball courts, but the legal courts. The resolution of your demand letter should firmly state you will seek further judicial action if your request is not met. Sadly, demand letters cannot be resolved with a free throw competition.

Word Choice Matters

Anyone has the power to write a demand letter. However, you should strongly consider hiring an attorney to draft the letter for you. Especially if the matter at hand is particularly sensitive and/or personal to you. Having a legally educated, unbias, third-party draft your demand letter protects you (the lender) in the future.

In the event your letter results in court proceedings, a judge will read the letter. Using language that is too harsh or threatening in your demand letter is not warmly received in the judicial system. Therefore, you should consult a lawyer to approve of, or even write, your demand letter. This will help protect you (the lender) from losing your rights in the court process.

Fair Debt Collections Practices Act

Furthermore, your demand letter must request a fair amount of money. Some disgruntled lenders try to tack on exorbitant fees and interest. However, there are federals laws in place to protect borrowers from excess fees. For example, the Fair Debt Collections Practices Act. This is just one example of various federal and state laws in place.

Are you suffering from unprecedented harassment from a debt collector? For example, receiving excessive late night calls or threats. You should consider drafting a Fair Debt Practices Demand Letter.

What to Do When You Recieve a Demand Letter

It is not ideal to be on either end of a demand letter. However, it is definitely more undesirable to be on the receiving end. Below are some steps to take if and when you receive a demand letter.

Do Not Ignore it

To reiterate, a demand letter is a precursor to a potential lawsuit. Therefore, being on the receiving end of one should not be taken lightly or neglected. Your demand letter should request a written response, also known as a response letter. Failure to oblige by the response deadline may result in the initiation of legal proceedings. Interestingly enough, you are not legally required to respond to a demand letter. However, your lack of response will not make the threat of legal action disappear. Additionally, once legal action has been taken, the process is much more difficult to cease. Worse still, a lack of response can reflect poorly on your case should the matter end up in the courts. The lender, or obligee, can argue that they offered a civil resolution to the issue, but it was ignored.

Look for Truth in the Demands

Personal feelings aside, honestly gauge whether or not the obligee’s demands are warranted. Do you, in fact, owe them what is requested? If so, is the amount accurate? Do you agree with the facts of the situation listed? Remember, there are two sides to every story. You have the right to counter and contest a demand letter if the contents are incorrect or overzealous.

Consider the Obligee’s Intentions

Demand letters are ultimatums. Despite their courteous legal demeanor. Unfortunately, sometimes the obligee’s motives are frivolous and selfish. Check with a lawyer if you are unsure whether or not you deserve a demand letter. Paying a one-time legal fee for a lawyer’s help is preferable over a long, drawn-out legal battle in the courts. Furthermore, having an attorney draft your response letter legitimizes your response and ensures the appropriate jargon is used. Be sure the lawyer is aware and understanding of any relevant history to the demand. Essentially, ask your attorney to legally translate your side of the story.

Confirm Receipt

A paper trail is your best friend when defending yourself in a lawsuit. Confirm receipt of your response letter. It is a good idea to send your response letter both digitally (email) and via trackable mail service to the obligees legal representatives. Save a verified copy for yourself as well.

Reaching a Settlement

One in three demand letters results in a settlement, thereby avoiding further legal action. A settlement is an official resolution to a legal dispute. If the demands within the letter are warranted and authentic, this is by far the best case scenario for all parties involved. Finally, a written release will formally close the case at hand.

Written Release

A written release is a formal legal document that releases one party from liability (or debt) to another. A release officially settles disputes. Typically, one party will exchange money or services to clear their name of the claim against them. For example, when a debtor pays back the funds owed to a lender. The written release is only valid if signed, willingly, by both parties. Finally, notarize the written release.

Let’s say, for example, you have a demand letter requesting $1,000 from your neighbor who crashed their car into your fence. Both parties agree to the terms, the neighbor pays what is owed, and a written release is signed and notarized. What happens if the fence repairs end up costing $2,000? You cannot go back and get more money from your neighbor. They have been formally, legally released from this matter. Unless you are able to prove plausible fraud or misrepresentation in the original agreement.

Speaking of fraud, if either party violates the terms of the agreement, the affected entity can file a lawsuit for any potential damages.

Elements of a Written Release

Specifics aspects of written releases vary depending on your case and the state in which the agreement took place. However, the basic components of a written release are:

Names and contact information (address, telephone, email) of both parties involved
A brief, but detailed description of the original dispute
The date of the agreement
A statement of agreed-upon terms (the amount of money being paid, services that will be performed, etc in exchange for the release of liability)
Various additional provisions. Such as a statement confirming that the release extends to any and all aspects regarding this dispute, current or future
A written statement that the release confirming that all matters pertaining to this issue cease here. For example, the releasor cannot go forth and demand the same debt from the releasee’s spouse or family members
The signatures of both parties. Legally, only the releasor is required to sign. However, it is always best for both parties to agree and officially sign the written release
A proper notarization signature and stamp (not legally required in most states, but a very smart step)

Notarization? What is that?

You likely noticed the mention of “notarization” once or twice in this article. If you are not familiar with this term, notarization is the formal witnessing of signatures on documents of great importance. An unbias third party, or a “notary”, will verify the authenticity of the signatures. This happens in a few steps:

The notary will confirm the signer’s identity with the presentation of a photo i.d. (typically a valid drivers license or passport)
Once identity is confirmed, the notary will ask the signer if they understand the document (in full) and are choosing to sign willingly
In some cases, a notary will require the signer verbally pronounce an oath confirming the truth of the document’s contents. The signer may choose to pronounce an affirmation instead. An affirmation bears the same weight but does not make a promise to God or a higher power. Oaths and affirmations are required in a jurat notarization
Finally, the notary themselves will sign and stamp the document. Every notary’s stamp is unique to them. However, all notary stamps contain the same elements: the name of the notary, their state of commission, and when their commission expires

Keep in mind that notary rules and regulations vary by state. Check with your local notary about your local laws regarding notarization.

Notary vs. Attorney

It is vital to understand that a notary cannot act as an attorney. Therefore, if you have any questions or curiosities about the document at hand, check with your lawyer before visiting a notary. A notary cannot give legal advice regarding documents they are notarizing.

An attorney can, however, be a certified notary. It is not uncommon for lawyers to become notaries to expedite notarizations within their law firm. They simply cannot notarize a document in which they had any legal role.

On the other hand, in Hispanic cultures, they have the “notario puplico”. While directly translated as “notary public”, their roles are vastly different. A notario publico undergoes a minimum of five years of vigorous legal training. Whereas a notary public in the United States simply takes a three-hour training course. Furthermore, some states do not require notaries complete any training at all. Finally, a notario publico is legally allowed to draft and advise upon documents they are notarizing. Conversely, a notary in America does not have this legal ability.

Where to Find a Notary

Documents commonly require notarization. From written releases and demand letters to the joyous paperwork involved with buying your first home, you will likely need a notary. Fortunately, there are over four million notaries in the United States alone. Therefore you should have no trouble finding one near you. Some places to start your search:

The public library – That’s right! Your local library houses more than old DVD’s of eighties TV shows. Many libraries offer free or low-cost notary services
Local businesses – Car dealerships, real estate offices, and insurance agencies, to name a few! These companies often need notary services for internal business purposes, so they often keep a notary on staff.
- Quick note: even if you are not a client/customer of these establishments, they have to honor your notarization request. Notaries are representatives of the secretary of state. Therefore, they serve the public. They are, however, entitled to charge you a fee for their service. Most states legally cap notary charges at $10 per signature or less
Credit Unions and Banks – If you are an account holder at a bank or credit union, you likely qualify for free notarization services there
Where you Work – If you are an employee at a larger company, you can likely access a notary at your office
Mobile Notaries – Chinese food isn’t the only thing you can have delivered right to your door. Bigger markets commonly have a number of notaries on-the-go who come to you! In addition to signing fees, mobile notaries charge a travel fee. However, isn’t it worth it to save irreplaceable time sitting in traffic?

Naturally, the availability of notaries varies depending on your place of residence. Do your due diligence to find the best notary in your area.

Types of Demand Letters

As previously mentioned, demand letters can be used in a number of different situations. The language used in the letter varies depending on the case at hand. Eforms.com has a comprehensive list of demand letter templates. Some of which include:

30-Day Demand Letter – As the name suggests, this letter gives the debtor 30 days to pay their outstanding debt
Refund Demand Letter – Dissatisfied with a product or service you purchased? A refund demand letter may help you recoup your costs if your request for a refund is valid
Personal Injury Demand Letter – As previously mentioned, you can send a demand letter requesting compensation regarding expenses from personal injury. This type of letter requests damages from a third party responsible for the injury
Breach of Contract Demand Letter – A contact is a legal agreement between two parties. Often times, a contract will involve an exchange of money or services. If either party does not fulfill their contractual obligations, a breach of contract demand letter can be useful
Child Support Demand Letter – This type of demand letter is for, you guessed it, failure to pay child support
Compensation Demand Letter – Have you ever worked a job and did not get paid as promised? Whether you didn’t get paid at all or received less than originally agreed upon, you may benefit from this type of letter
Response to Demand Letter – For when you are the recipient of a demand letter
… and more!

As discussed, these are just a few examples of when and how demand letters may be utilized! Follow the hyperlink of each type of letter to learn more about the specifics of each.

What is a Demand Letter: In Summary

In a demand letter, the affected party formally requests owed money or services from another party or entity. A demand letter is a preamble to a potential lawsuit. Demand letters are serious, legal documents and should not be ignored. In the event both parties reach an agreement (aka settle) a written release formally closes the case. Otherwise, the dispute will lead to a lawsuit and cost valuable time and money at the expense of both parties. Save yourself some trouble and consult a lawyer about local laws and regulations specific to your case.

Sources

https://www.investopedia.com/terms/d/demand-letter.asp

https://www.nolo.com/legal-encyclopedia/demand-letter-settle-dispute-30105.html

https://www.nolo.com/legal-encyclopedia/free-books/small-claims-book/chapter6-5.html

https://www.nolo.com/legal-encyclopedia/what-to-do-when-you-receive-a-demand-letter.html

https://www.nationalnotary.org/knowledge-center/about-notaries

https://www.thebalanceeveryday.com/where-to-notarize-affidavit-896914

https://www.notarypublicstamps.com/articles/what-is-a-notario-publico/

https://www.legalzoom.com/articles/the-dos-and-donts-of-writing-a-demand-letter

The Importance Of Written Release Agreements

https://en.wikipedia.org/wiki/Settlement_(litigation)

Demand Letter Templates — with Samples

Five Things You Should Know about ‘Demand Letters’

About The Author

Chelsea Rivera

Deed of Trust: Everything You Need to Know

/ Uncategorized / By Chelsea Rivera

Buying and selling property is a complex experience. The exchange of such a valuable asset is riddled with paperwork. No exchange of property is complete without having to handle a deed. However, did you know there are different types of deeds? In this article, we are going to cover everything from a quitclaim deed to a deed of trust, and everything in between. Get your signing pen ready, because you are about to become a well-informed property owner!

What is a Deed of Trust?

More than likely, the purchase of a home or property is going to involve borrowing money. If that is the case, you will likely need a deed of trust. A deed of trust is a written arrangement between a borrower and a lender. This document appoints an unbias third party, known as a trustee, as the bearer of the legal title of the property. This arrangement serves as leverage while the borrower pays off the loan to the lender. In the meantime, the borrow maintains the right to the equitable property title. Therefore, the borrower is responsible to care for and maintain the property.

Deed Definition

To better understand a deed of trust, let’s take it back a few steps. What is a deed, in general? A deed is a legal instrument used to transfer ownership rights in property sales. A deed is a physical document that is signed by both the buyer and the seller in a property transaction.

The property on a deed may be a home, condo, commercial space, or a plot of land. Every piece of real estate property should have a deed.

Trust Definition

Like deeds, there are various types of trusts. However, for the sake of this article, we only need to know what the definition of a general trust is. A trust is a financial agreement in which a third party (trustee) bears ownership of a certain asset on behalf of a beneficiary.

Parties Involved in a Deed of Trust

To further clarify, a deed of trust is an agreement between three different parties. Everyone involved plays a specific role.

The Trustor – Whoever is borrowing money to purchase the property. Bearer of the equitable title
The Trustee– A neutral third party that holds the legal title (sometimes called the “bare” title)
The Lender – Also known as the “beneficiary”. The lender is providing the money for the loan

This relationship is intended to protect the lender in the event the trustor defaults on their payments.

The Role of the Trustee

The function of the trustee in a deed of trust requires extrapolation. You may assume that a trustee is required to take over the trustors payments in case of default. However, that is not the case. Instead, a trustee will handle the sale of the property if the trustor can no longer cover their debt. The property itself is collateral in a deed of trust.

As previously mentioned, the trustee must be an impartial, unbias third party. This fact is a crucial element of a deed of trust. The impartiality of the trustee helps prevent fraud. The trustee should not financially favor the lender or the trustor in terms of the sale. Once the property is sold, the trustee will distribute the funds acquired from the sale. The lender will receive the amount outstanding from the loan. The trustor, on the other hand, will receive whatever is leftover.

Title vs. Deed

At this point, you may be thinking to yourself “deeds and titles sound like the same thing”. However, that is not legally the case. A title states that you legally own the right to access and use a property as you so desire. A deed, on the other hand, is a legal document that is used in the transfer of property ownership. However, in order to have full and true ownership of a property, your name must be on both the property’s title and the deed.

What is a Title?

A property title expresses ownership over a property. Having your name on a title gives you the right to access, alter, and sell a piece of property. A title also makes you responsible for the properties maintenance and well being.

Legal Title vs. Equitable Title

While a title indicates ownership, it can be split amongst parties. In a deed of trust, the trustee holds the legal title of the property. The legal title represents actual ownership. If the property only has a legal title documented, the title owner will be responsible for the care and maintenance of the property. Additionally, the legal title holder would have the right to alter and enjoy the property as they please. Finally, a legal title allows you the right to sell the property.

On the other hand, the trustor maintains an equitable title in a deed of trust. In this case, the trustor would have the sole rights to maintain, alter, and enjoy the property. Therefore, if a property has both a legal title and an equitable title, only the equitable title holder can benefit from the property.

For example, let’s say Sarah signed a deed of trust and has the equitable title to her home. Her trustee, Jason of Small Town Title and Loan, is the legal title holder. Sarah has the sole right to use and enjoy the house to her liking. Jason cannot simply show up with friends wanting to host a dinner party. As the legal title holder, Jason merely has the right to sell the house is Sarah defaults on her loan. Once Sarah has successfully paid her loan in full, she will become the legal title holder.

Elements of a Deed of Trust

A deed of trust form will outline the following information:

The amount of money being borrowed (also referred to as the “principle”)
Names and roles of all involved parties
A legal description of the property (more specific than just the address and the paint color)
Any known floor plans, diagrams, or blueprints related to the property
Dates of both the signing and maturity of the loan
Various additional riders, requirements, and provisions
How to legally proceed should the trustor default on payments
Acceleration or alienation clause (more on that to follow)

The requirements listed above can vary based on the state and the type of property detailed in the deed. Be sure to check the necessary requirements for your specific transaction.

Legal Description

To enumerate, a legal description is far more than just a simple street address. “Legal description” is a term often used in real estate regarding property sales. Previous deeds on the property should have a legal description listed. You can usually find previous property deeds at your local county clerk’s office or recorder of deeds office. Many of the offices even offer online access!

While a physical address should be included on a deed, a legal description is more specific. Different types of properties may require different descriptors. However, the description will usually detail survey information. Such as lot or block references, subdivisions names, and detailed plot measurements.

Acceleration and Alienation Clauses

These provisions mandate that the buyer pay the remaining balance in full under specific circumstances. Namely, if the buyer chooses to sell the property. In that case, the acceleration clause will kick in and require the buyer to pay their outstanding loan balance on the property. These type of clauses are standard in every loan agreement these days. According to the U.S. Securities and Exchange Commission, verbiage included in the clause is as follows:

“In the event the Property or any part thereof or any interest therein is sold, conveyed or alienated by the Trustor, whether voluntarily or involuntarily, except as prohibited by law, all obligation secured by this instrument, irrespective of the maturity dates express therein, at the option of the holder hereof and without demand or notice, shall immediately become due and payable.”

Not only will the trustor (buyer) owe the remaining balance on the loan, but may be subject to fees and interest charges.

Mortgage vs. Deed of Trust

More often than not, when someone buys a house they will have to borrow money to do so. Borrowing money is referred to as a “loan”. Once the money has been granted, the lender is going to want to protect their investment. The lender will either do this in the form of a mortgage or a deed of trust.

Banks and other large lending companies tend to favor using mortgages. Conversely, smaller companies or individual lenders will likely choose to use a deed of trust. Both documents have the same purpose: to ensure the loan is paid back to the lender. Additionally, both mortgages and deeds of trust do this by placing a lien on the property. A lien uses the property as collateral. Meaning, the lender has the right to sell the property if the loan defaults.

The Differences: Mortgage vs. Deed of Trust

While mortgages and deeds of trust are similar in many ways, they are also different. For example, a mortgage is a contract between two parties: the lender and the borrower. Conversely, a deed of trust includes an additional third party: the trustee. As previously stated, the trustee holds the legal title while the loan is being repaid.

Furthermore, the quintessential difference lies in what happens when the trustor (borrower) cannot pay back the loan. In terms of a mortgage, the home will go through a judicial foreclosure process. Translation: the property sale must go through the courts and is instigated by the lender filing a lawsuit. Unfortunately, lawsuits are notoriously expensive and time-consuming. In the case of a mortgage loan default, this process negatively affects both the lender and the borrower.

On the other hand, a loan default with a deed of trust goes through a non-judicial foreclosure. Should the loan payments falter, the foreclosure of the home can bypass the courts. Naturally, this makes the process less of a time-consuming financial burden.

Who can Use a Deed of Trust?

As previously mentioned, rules and regulations pertaining to deeds of trust vary by state. In fact, not all states even allow deeds of trust. Conversely, some states require a deed of trust when money is borrowed for real estate purposes. Fortunately, Rocket Lawyer has a cohesive list of states that allow deeds of trust.

If your state has the option to use a deed of trust, your lender will likely encourage it over a mortgage. Deeds of trust are a better deal for the lender. Should the borrow default, the lender can avoid the expensive judicial foreclosure process.

Deed of Reconveyance

You did it! You paid off your loan! What now? The lender will issue a deed of reconveyance. This document formally states that the borrower has paid off their debts in full. Better yet, a deed of reconveyance transfers the legal title of the property to the trustor (buyer).

Additionally, a Deed of Reconveyance goes by different names in some states. Such as Full Reconveyance, Release of Deed of Trust, or Reconveyance of Deed of Trust.

Finally, a Deed of Reconveyance must be notarized filed with your local recorder of deeds or county recorder. A buyer will typically have 30 days to file without penalty. Once the document is accepted by the state, the property will officially be paid for and free of liens.

Promissory Note

A promissory note is often used in tandem with a deed of trust. Therefore, it is important to discuss how a promissory note fits into this process. A promissory note is a document in which the borrower promises to pay back a loan. This document, sometimes simply called a “note”, will go on to specify the terms of the loan. A note will typically include the following information:

Borrower and Lender information – Legal names, addresses, contact information, and sometimes a social security number for added identification purposes
Loan Amount and Terms – The full amount of the loan, and the agreed-upon increments of payment. This section will typically include any applicable interest rates and payment schedules. Additionally, the inciting date as well as when the loan must be paid off
Security Agreement – This is where the mortgage or deed of trust comes in. A security agreement details the collateral promised, should the loan default. In the case of a deed of trust, the collateral is the property purchased.

Promissory notes are used in all types of transactions and agreements. Home and car loans, business loans, student loans, and even personal loans amongst friends and family. The note is a legally binding record of a transaction. Promissory notes help ensure a lender will get their money back.

What is a Notary?

A number of the documents mentioned in this article require notarization. If you are unfamiliar, notarization is when an unbias third party, called a notary, witnesses the signing of important documents. A proper notarization involves several steps:

Identification – The foundation of notarization is proper identification of the signing party
Confirmation – Confirming identity is simply the tip of the iceberg. A notary will also ensure that each signing party understands the document in full. Finally, the notary will confirm that everyone involved is signing by choice and not by force
Oath or Affirmation – Sometimes, certain documents require a jurat notarization, or “jurat”. The foundational element of a jurat is the addition of a spoken oath by the signer. This oath confirms that, to the knowledge of the signer, the contents of the document are true. A signer can also opt to agree to an affirmation. The context is the same as an oath, however, an affirmation does not make the promise to God or a higher power.
Signing – Not all states require that the actual signing take place in the presence of a notary. However, it is best to air on the side of caution and wait to sign until a notary is physically present
Notary Stamp – Finally, the notary themselves will sign and stamp the document. The stamp will include the name of the notary, their state of commission, and the date their certification expires (note: Your document will remain valid after their stamp expires)

Notary laws are not federally mandated. Therefore, laws and requirements vary depending on the state where the notarization is taking place. Be sure to check your local notary laws to ensure a valid notarization.

Where can I find a Notary?

Notaries are far more common than you may think. In fact, there are millions of certified notaries in the United States alone. The hours, pricing, and availability of notaries vary locally. However, here are a few places you can typically find notary services:

Your place of business! – Save yourself the hassle of running around town, many companies have a notary on staff for business use. However, they will typically allow employees to use their services for personal use as well
Financial Institutions – Banks and local credit unions almost always offer notary services. Better yet, if you are a client their services are often complimentary
Colleges and Universities – Many educational institutions offer free or low-cost notary services to students and faculty
Car dealerships, Insurance offices, and real estate agencies – Due to high notarization demand internally, certain businesses will have a notary on staff that is also available for public use
Mobile Notaries – Better yet, have a notary come to you! This option is prominent in large cities. Naturally, this premium service can have a high price tag. However, you will save valuable time

Keep in mind that notaries are official representatives of the state. Therefore, they serve the public. For this reason, you cannot get turned away for notary services if you are not a customer of any of the above places.

What do I Need to get my Deed Notarized?

Especially in matters pertaining to buying a selling property, the paperwork can be a tornado of confusion. To make your life easier, be sure to literally cross all the t’s and dot the i’s when attending a notary appointment. You should bring with you:

The document requiring notarization (duh) – Make sure to bring the original copy. Should any amendments be added, a new notarization will be necessary. Save time at the appointment by filling out any necessary fields. However, resist the urge to sign it until in the presence of a notary
Photo Identification – A valid, photo i.d. is mandatory for an official notarization to take place. A current drivers license or passport are the two most commonly accepted forms of i.d. If you have a different type of i.d. be sure to check whether or not it is an acceptable form of identification
All signing parties – Many documents require signatures from multiple people in order to be accepted. Save time and money by having all necessary parties present at once for notarization. If this is not possible (say, if someone lives in another state) a document can be notarized multiple times, even by multiple notaries. However, this significantly lengthens the process and typically costs more money to process
Notary payment – As previously mentioned, some businesses offer free notary services. However, most notaries will charge a per-signature fee. This fee is usually legally capped at a certain amount by state. California notaries, for example, cannot charge more than $10 per signature. However, ertain services may incur additional fees. For example, a mobile notary usually charges a fee for travel time

Check with your local preferred notary to make sure you have all the necessary requirements for your state and/or type of document.

Deed of Trust: In Conclusion

Buying property is a thrilling step in a persons journey. Whether you are buying your first family home or your seventh business office – you are procuring a space for memories to form and life to unfold. However, property transactions are riddled with layers of paperwork and legal snafus. Chief amongst them: a deed of trust. This document aids in the purchase of a property in which a loan is required. A trustee will hold the legal title to the property, while the buyer pays back the loan. During this time, the buyer maintains the equitable title to the asset, and therefore the right to enjoy the property. Specifics of real estate transactions vary by state, so be sure to research the details of your location. Hopefully, this article cleared up some of the process of property transactions. Happy property buying and selling!