Deed of Trust (Mortgage Alternative) - Alabama

DEED OF TRUST

State of Alabama

PREPARED BY:
[PREPARER NAME]
[ADDRESS]
[CITY, STATE ZIP]

RETURN TO:
[NAME]
[ADDRESS]
[CITY, STATE ZIP]

Date: [DATE]
Instrument Number: _________________ (Judge of Probate's Use)
Property Address: [PROPERTY ADDRESS, CITY, AL ZIP]
Parcel ID: [PARCEL ID]
Marital status of each individual Grantor: [UNMARRIED / MARRIED TO NAME: ________________________________]

DEED OF TRUST WITH POWER OF SALE

THIS DEED OF TRUST is made this [DAY] day of [MONTH], [YEAR], by and among:

GRANTOR (Borrower):
[GRANTOR NAME(S)]
[ADDRESS]
[CITY, STATE ZIP]

TRUSTEE:
[TRUSTEE NAME]
[ADDRESS]
[CITY, STATE ZIP]

BENEFICIARY (Lender):
[BENEFICIARY/LENDER NAME]
[ADDRESS]
[CITY, STATE ZIP]

RECITALS AND GRANT

WHEREAS, Grantor is indebted to Beneficiary in the principal sum of [PRINCIPAL AMOUNT] DOLLARS ($[AMOUNT]), as evidenced by a Promissory Note of even date herewith (the "Note");

NOW, THEREFORE, Grantor does hereby grant, bargain, sell, and convey unto Trustee, in trust, with POWER OF SALE, the following described real property situated in [COUNTY] County, Alabama:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], Alabama [ZIP CODE]

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, and profits; and all fixtures now or hereafter attached to the property (collectively, the "Trust Property").

ARTICLE I - OBLIGATIONS SECURED

This Deed of Trust secures to Beneficiary:
(a) The repayment of the debt evidenced by the Note, with interest, and all renewals, extensions, and modifications;
(b) The payment of all other sums, with interest, advanced under this Deed of Trust;
(c) The performance of Grantor's covenants and agreements under this Deed of Trust and the Note.

ARTICLE II - TRUSTEE PROVISIONS

2.1 Power of Sale. Grantor grants a power of sale to secure the Note. Alabama Code § 35-10-11 includes a deed of trust in the definition of mortgage for the foreclosure article. Section 35-10-12 permits exercise of the power by the person entitled to the secured money through assignment or otherwise; any sale must follow applicable notice and sale requirements.

2.2 Substitution of Trustee. Beneficiary may appoint a successor Trustee by a written instrument to the extent permitted by applicable law. Any exercise of the power of sale remains subject to § 35-10-12.

2.3 Duties. Trustee shall act under this instrument and applicable Alabama law in carrying out any authorized sale or conveyance.

ARTICLE III - COVENANTS OF GRANTOR

Grantor covenants and agrees as follows:

3.1 Payment. Grantor shall pay when due the principal and interest on the debt evidenced by the Note and all other sums secured hereby.

3.2 Insurance. Grantor shall keep the improvements insured against loss by fire and other hazards, with Beneficiary named as loss payee.

3.3 Taxes and Assessments. Grantor shall pay before delinquency all taxes, assessments, and charges against the Trust Property.

3.4 Maintenance. Grantor shall maintain the Trust Property in good condition and repair and shall not commit or permit waste.

3.5 Defense of Title. Grantor shall defend title against all claims.

3.6 Compliance with Laws. Grantor shall comply with all laws, ordinances, and regulations affecting the Trust Property.

ARTICLE IV - ASSIGNMENT OF RENTS

4.1 Assignment. Grantor hereby assigns to Beneficiary all rents, issues, and profits of the Trust Property as additional security.

4.2 License to Collect. Grantor shall have a license to collect and retain such rents prior to default. Upon default, this license shall terminate.

ARTICLE V - DEFAULT AND FORECLOSURE

5.1 Events of Default. The following shall constitute Events of Default:
(a) Failure to make any payment when due under the Note or this Deed of Trust;
(b) Breach of any covenant or agreement herein;
(c) Material misrepresentation by Grantor;
(d) Transfer of the Trust Property without Beneficiary's prior written consent;
(e) Failure to perform another material obligation expressly stated in the Note.

5.2 Power-of-Sale Foreclosure. Beneficiary may exercise the power of sale granted in this instrument only through the person authorized by § 35-10-12 and in compliance with applicable law.

5.3 Homestead Redemption Notice. If the foreclosure concerns residential property on which a homestead exemption was claimed in the tax year of sale, Alabama Code § 6-5-248(h) requires the foreclosing mortgagee to mail the statute's redemption-rights notice to the mortgagor at the property address at least thirty (30) days before foreclosure by certified mail with proof of mailing and to include that notice in the publication required by § 35-10-13.

5.4 Notice of Sale. For a power-of-sale foreclosure governed by Article 2 of Chapter 10, Alabama Code § 35-10-13 requires:
(a) Publication of notice once a week for three (3) successive weeks in a newspaper published in the county where the Trust Property is located;
(b) If the Trust Property is in more than one county, publication must be in all counties where it is located;
(c) The notice of sale must give the time, place, and terms of sale, together with a description of the Trust Property;
(d) If no newspaper is published in the county, notice shall be placed in a newspaper published in an adjoining county for three successive weeks.

5.5 Location and Time of Sale. Under Alabama Code § 35-10-14, the power is exercised at the front or main door of the courthouse in the county where the Trust Property, or a substantial and material part of it, is located, between 11:00 a.m. and 4:00 p.m.

5.6 Conduct of Sale. The sale shall be:
(a) At public auction;
(b) To the highest bidder for cash;
(c) At the time and place specified in the notice.

5.7 Foreclosure Deed. The person authorized under § 35-10-12 shall execute the conveyance to the purchaser after a lawful sale; this may be the mortgagee, its agent or attorney, or the person making the sale.

5.8 Application of Proceeds. Sale proceeds shall be applied to lawful sale costs and secured obligations, with any surplus distributed to persons legally entitled to it after accounting for applicable lien priorities.

5.9 Right of Redemption (Ala. Code § 6-5-248). Alabama provides a statutory right of redemption:
(a) 180 days from the date of sale for residential property on which a homestead exemption was claimed in the tax year during which the sale occurred, subject to subsection (h)'s notice rule; if required notice is defective or omitted, the redemption period does not begin until compliant notice, but ends no later than one year after foreclosure;
(b) One (1) year from the date of sale for all other property.

5.10 Remaining Debt. Any claim for a remaining balance is governed by the Note and applicable law, after crediting the sale proceeds.

ARTICLE VI - RECONVEYANCE

6.1 Satisfaction. Once all secured indebtedness and obligations have ended, including any commitment to make further advances, the debt is satisfied under § 35-10-26. For a deed of trust covered by the Alabama Residential Mortgage Satisfaction Act, the secured creditor shall submit a satisfaction for recording within 30 days after full payment and performance and the end of any obligation to extend value under § 35-10-92(a). An equity line must also be closed as provided there. For any other deed of trust, the person who received payment shall, on a qualifying written request, record or enter a proper satisfaction under §§ 35-10-26 and 35-10-27, as applicable.

6.2 Recording. The release shall be recorded with the Judge of Probate in the county where the Trust Property is located.

ARTICLE VII - RECORDING REQUIREMENTS

7.1 Recording. Present this Deed of Trust for recording in the office of the Judge of Probate of [COUNTY] County, Alabama. Each individual Grantor's marital status must be recited for acceptance under § 35-4-73.

7.2 Recording Tax. Pay the privilege or license tax applicable to a debt-securing deed of trust under § 40-22-2 before it is accepted for recording.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Deed of Trust shall be governed by Alabama law.

8.2 Successors and Assigns. This Deed of Trust binds and benefits the heirs, executors, administrators, successors, and assigns of the parties.

8.3 Severability. If any provision is held invalid, all other provisions remain in full force.

8.4 Notices. All notices shall be in writing and sent to the addresses set forth above.

8.5 Entire Agreement. This Deed of Trust and the Note constitute the entire agreement of the parties.

ARTICLE IX - RIDERS AND ADDENDA

The following riders are attached hereto and incorporated herein:

☐ Adjustable Rate Rider
☐ Condominium Rider
☐ Planned Unit Development Rider
☐ Second Home Rider
☐ 1-4 Family Rider
☐ Other: [SPECIFY]

SIGNATURE PAGE

IN WITNESS WHEREOF, Grantor has executed this Deed of Trust as of the date first written above.

GRANTOR(S):

_______________________________
[GRANTOR NAME]
Date: _________________________

_______________________________
[GRANTOR NAME]
Date: _________________________

SPOUSE'S VOLUNTARY ASSENT, IF THE PROPERTY IS A MARRIED GRANTOR'S HOMESTEAD (§ 6-10-3):

I voluntarily sign and assent to this conveyance of the homestead.

_______________________________
[SPOUSE NAME]
Date: _________________________

ACKNOWLEDGMENT

STATE OF ALABAMA
COUNTY OF [COUNTY]

I, the undersigned authority, a Notary Public in and for said County in said State, hereby certify that [GRANTOR NAME(S)], whose name(s) is/are signed to the foregoing instrument, and who is/are known to me, acknowledged before me on this day that, being informed of the contents of the instrument, he/she/they executed the same voluntarily on the day the same bears date.

Given under my hand this _____ day of ______________, 20___.

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

SEPARATE SPOUSAL EXAMINATION AND ACKNOWLEDGMENT, IF § 6-10-3 APPLIES:

STATE OF ALABAMA
COUNTY OF [COUNTY]

I, [OFFICER NAME AND TITLE], certify that [SPOUSE NAME], whose name is signed above and who is known to me, was examined before me and acknowledged that, being informed of the contents of this conveyance, [SPOUSE NAME] voluntarily executed and assented to it on the date it bears. Given under my hand this [DAY] day of [MONTH], [YEAR].

_______________________________
[OFFICER SIGNATURE AND TITLE]

My Commission Expires: [__/__/____]

EXHIBIT A

LEGAL DESCRIPTION

The land referred to herein is situated in [COUNTY] County, State of Alabama, and is described as follows:

[INSERT COMPLETE LEGAL DESCRIPTION]

Parcel ID: [NUMBER]

This document prepared by:
[PREPARER NAME]
[ADDRESS]
[PHONE]
[EMAIL]