Deeds, Notes, and Deeds of Trust Attorney in Boulder
Through my experience as a real estate attorney in Boulder who routinely drafts and records deeds and deeds of trust, it has become clear that an acute understanding of the law, an eye for detail, and broad experience are necessary to be able to identify and resolve the dizzying variety of complex, often archaic legal issues related to conveyancing and mortgaging that may come up in any given real estate matter.
Nearly every time a parcel of real estate changes hands in Colorado, the execution and delivery of a deed is an essential component of the transfer. Similarly, nearly every time a loan is involved in the sale of real estate, a promissory note and deed of trust are also necessary to ensure repayment.
A deed is a written legal instrument through which a seller or owner of land (improved or unimproved), conveys to someone else some title, right, or interest in or to the real estate. Sometimes deeds are used not to convey an interest in real estate, but simply to confirm that title has changed hands as a matter of law. The seller or owner of the land is typically designated on a deed as the Grantor and the recipient is called the Grantee.
In real estate sales promissory notes are negotiable instruments by which one party (the Maker or Debtor) promises to pay a specified sum of money to another party (the Payee). Promissory notes are ubiquitous in real estate transactions in Colorado and throughout the United States.
Along with promissory notes, deeds of trust are also ubiquitous in Colorado. Deeds of trust are legal instruments used in real estate sales through which a debtor, usually one who has just taken out a loan to purchase a property, entrusts the recently purchased real estate to the public trustee for the county in which the real estate is located (e.g. the Public Trustee of Boulder County if the real estate is located in Boulder, Colorado). The purpose of this arrangement is for the lender to bypass the courts (for the most part) if the purchaser defaults on the loan. Upon default, the lender can go straight to the public trustee to start the foreclosure process. Although much more complicated, the underlying principal is the same as what a purchaser of a car encounters when he or she takes out an auto loan. After the sale and financing are finalized, the purchaser owns the car, but in exchange for the loan the purchaser has allowed the lender to attach a lien to the car’s title that gives the lender the power to repossess the car if the purchaser does not pay according to the terms of the loan. Similarly, in real estate transactions lenders (usually banks) require the execution of a deed of trust from the purchaser to the lender in order to attach a security interest on the real estate, which can be foreclosed in the event of default by the purchaser.
The ostensible simplicity of deeds, which are often one page, can be a dangerous trap for the unwary. There are websites that advertise widely for do-it-yourself legal documents. The important legal instruments I just mentioned can be casually picked up at office supply stores, filled in, and filed with the county recorder. It’s as simple as that. Isn’t it?
Unfortunately for far too many people in the internet age, the easy, free, fast-paced approach of do-it-yourself often turns out to be an unmitigated disaster when the do-it-yourselfer finally consults a lawyer, perhaps when he or she decides to sell the property, and finds out that there is no way to remedy the harm that has already been done.
These documents have many second and third order legal consequences that are by no means simply academic or theoretical in nature. I sometimes have the unenviable obligation of advising individuals who have used seemingly simple quitclaim deeds with the mistaken belief that the effects of filing a such a deed could be reversed. It is vital to have the advice and experience of a real estate attorney who understands the state and federal legal and tax consequences of conveyancing before doing anything involving real estate sales or transfers.
If you believe a deed (e.g., warranty deed, special warranty deed, quitclaim deed, or beneficiary deed), deed of trust (i.e., mortgage), or promissory note may be necessary to effectuate a real estate deal, and are looking for a Deeds, Notes, and Deeds of Trust Attorney in Boulder with a results oriented, cost-effective approach tailored to your matter’s specific needs, contact Newell Law. We have the experience and knowledge to achieve the best results possible for your matter.