Deed of Trust

DEED OF TRUST

State of Maryland

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

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

Date: [DATE]
Liber/Folio: _________________ (Clerk's Use)
Property Address: [PROPERTY ADDRESS, CITY, MD ZIP]
Account/Tax ID: [ACCOUNT NUMBER]

DEED OF TRUST

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

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

TRUSTEES:
[TRUSTEE NAME(S)]
[ADDRESS]
[CITY, STATE ZIP]

BENEFICIARY/SECURED PARTY (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, in consideration of the premises and of the indebtedness aforesaid, Grantor does hereby grant, convey, and confirm unto Trustees, their heirs and assigns, in fee simple, with all the powers provided by law and by this Deed of Trust, including a POWER OF SALE, the following described real property situated in [COUNTY/CITY] County/City, Maryland:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], Maryland [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").

TO HAVE AND TO HOLD the same unto Trustees, in trust, upon the terms and conditions herein set forth.

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 Multiple Trustees. This Deed of Trust names [NUMBER] Trustees. Any one or more of the Trustees, or any substitute Trustee, may act on behalf of all Trustees.

2.2 Substitution of Trustee. Beneficiary may, from time to time, remove any Trustee and appoint successor or substitute Trustees by recording an instrument of substitution. The successor Trustee(s) shall succeed to all title, powers, and duties of the original Trustees.

2.3 Trustee's Powers. Trustees are given the power of sale and other powers as provided by Maryland law.

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) Bankruptcy or insolvency of Grantor.

5.2 Foreclosure in Maryland. Maryland uses a hybrid system. While the power of sale is contained in the Deed of Trust, foreclosure sales must receive court approval and are conducted under court supervision. Foreclosure proceedings are governed by Maryland Rules 14-201 through 14-215.

5.3 Pre-Foreclosure Notice Requirements.

(a) Notice of Intent to Foreclose. For residential property, a written Notice of Intent to Foreclose must be sent to Grantor at least forty-five (45) days before filing the foreclosure action (or ninety (90) days for certain loans). The notice must include information about the default and Grantor's rights.

(b) Loss Mitigation. The lender must meet certain loss mitigation requirements before proceeding with foreclosure on owner-occupied residential property.

5.4 Order to Docket. Trustees must file an Order to Docket with the Circuit Court to commence foreclosure. The Order to Docket must include:
(a) A statement of the debt;
(b) A description of the Trust Property;
(c) A copy of the recorded Deed of Trust;
(d) Proof that notice requirements have been met.

5.5 Notice of Sale. Notice of the foreclosure sale must be:
(a) Published in a newspaper of general circulation in the county or Baltimore City at least once a week for three (3) successive weeks prior to the sale, with the first publication at least fifteen (15) days before the sale;
(b) Sent to Grantor by first-class mail and certified mail at least ten (10) days prior to the sale.

5.6 Conduct of Sale. The sale shall be:
(a) At public auction at the courthouse or other location designated by the court;
(b) At the date, time, and place specified in the notice;
(c) To the highest bidder.

5.7 Ratification of Sale. Following the sale, Trustees must file a Report of Sale with the court. The court will then consider whether to ratify (approve) the sale. The sale is not final until ratified by the court. Grantor and other parties may file exceptions to the sale.

5.8 Trustee's Deed. After court ratification, Trustees shall execute and deliver a Trustee's Deed to the purchaser.

5.9 Application of Proceeds. Trustees shall apply the proceeds of sale:
(a) First, to costs and expenses of the sale, including Trustees' fees and reasonable attorney's fees;
(b) Second, to all sums secured by this Deed of Trust;
(c) Third, to junior liens in order of priority;
(d) Fourth, the surplus to Grantor or persons legally entitled thereto.

5.10 Deficiency. Maryland permits deficiency judgments. If sale proceeds are insufficient, Beneficiary may pursue a deficiency judgment against Grantor.

ARTICLE VI - RELEASE

6.1 Release. Upon payment of all sums secured hereby, Beneficiary shall request Trustees to execute a release of this Deed of Trust suitable for recording.

6.2 Recording. The release shall be recorded with the Clerk of the Circuit Court in the county where the Trust Property is located.

ARTICLE VII - RECORDING REQUIREMENTS

7.1 Recording. This Deed of Trust shall be recorded with the Clerk of the Circuit Court for [COUNTY/CITY] County/City, Maryland, among the Land Records.

7.2 Recording Taxes. Appropriate state and county recordation taxes and transfer taxes shall be paid at the time of recording.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Deed of Trust shall be governed by Maryland 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):

_______________________________ [SEAL]
[GRANTOR NAME]
Date: _________________________

_______________________________ [SEAL]
[GRANTOR NAME]
Date: _________________________

ACKNOWLEDGMENT

STATE OF MARYLAND
[COUNTY/CITY] OF _______________________, to-wit:

I HEREBY CERTIFY that on this _____ day of ______________, 20___, before me, the undersigned Notary Public, personally appeared [GRANTOR NAME(S)], known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.

AS WITNESS my hand and Notarial Seal.

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

Account/Tax ID Number: [NUMBER]

Being the same property conveyed to [GRANTOR NAME] by [DEED TYPE] dated [DATE] and recorded among the Land Records of [COUNTY/CITY] County/City, Maryland, in Liber [NUMBER] at Folio [NUMBER] (or Instrument Number [NUMBER]).

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