Deed of Trust (Security Instrument)

DEED OF TRUST

State of New York

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

Date: [DATE]
Liber/Page or CRFN: _________________ (County Clerk's Use)
Property Address: [PROPERTY ADDRESS, CITY, NY ZIP]
Tax Map Designation: Block [BLOCK], Lot [LOT]

IMPORTANT NOTICE - JUDICIAL FORECLOSURE STATE

NEW YORK IS A JUDICIAL FORECLOSURE STATE. All mortgage foreclosures in New York are judicial foreclosures, meaning the foreclosing lender must commence and prosecute a lawsuit. Non-judicial foreclosure does not apply to residential properties. While deeds of trust may be recorded, foreclosure procedures follow RPAPL §§ 1301-1392.

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]

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, the following described real property situated in [COUNTY] County, New York:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], New York [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 - COVENANTS OF GRANTOR

Grantor covenants and agrees as follows:

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

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

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

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

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

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

ARTICLE III - ASSIGNMENT OF RENTS

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

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

ARTICLE IV - DEFAULT AND FORECLOSURE

4.1 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.

4.2 Judicial Foreclosure Required. New York requires judicial foreclosure for all residential mortgages and deeds of trust. A foreclosure begins when the lender files a lawsuit (lis pendens) with the court.

4.3 Pre-Foreclosure Notice (RPAPL § 1303 and § 1304). For residential properties:
(a) A 90-day pre-foreclosure notice must be sent to the borrower prior to commencing foreclosure;
(b) The notice must provide information about curing the default and list government-approved housing counseling agencies;
(c) The servicer must wait until the loan is more than 120 days delinquent before filing foreclosure.

4.4 Summons and Complaint. Beneficiary must file a lawsuit and serve Grantor with a summons and complaint. Grantor has twenty (20) days (or thirty days if served outside New York) to file an answer.

4.5 Mandatory Settlement Conference. For residential properties, New York courts require a mandatory settlement conference to explore alternatives to foreclosure.

4.6 Statute of Limitations. The statute of limitations for foreclosure is six (6) years from the date of default or acceleration under CPLR § 213.

4.7 Foreclosure Abuse Prevention Act (FAPA). Under FAPA, enacted in 2022, if a lender voluntarily discontinues a foreclosure action or sends a de-acceleration letter, it does NOT reset the six-year statute of limitations clock.

4.8 Judgment of Foreclosure and Sale. If the court grants judgment to Beneficiary, the court will issue a judgment of foreclosure and sale, and a referee will be appointed to conduct the sale.

4.9 Foreclosure Sale. The sale shall be:
(a) At public auction;
(b) Conducted by the court-appointed referee;
(c) At the time and place specified by the court.

4.10 Referee's Deed. Upon completion of the sale, the referee shall execute and deliver a Referee's Deed to the purchaser.

4.11 Deficiency Judgment. New York permits deficiency judgments. Beneficiary may seek a deficiency judgment within ninety (90) days after the sale is consummated.

ARTICLE V - RELEASE

5.1 Satisfaction. Upon payment of all sums secured hereby, Beneficiary shall execute a Satisfaction of Mortgage (or Satisfaction of Deed of Trust) suitable for recording.

5.2 Recording. The satisfaction shall be recorded with the County Clerk in the county where the Trust Property is located.

ARTICLE VI - RECORDING REQUIREMENTS

6.1 Recording. This Deed of Trust shall be recorded with the County Clerk of [COUNTY] County, New York (or the Register of the City of New York if in New York City).

6.2 Mortgage Recording Tax. New York Mortgage Recording Tax shall be paid upon recording.

6.3 Mansion Tax. For properties of $1,000,000 or more, additional tax applies.

ARTICLE VII - MISCELLANEOUS PROVISIONS

7.1 Governing Law. This Deed of Trust shall be governed by New York law.

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

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

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

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

ARTICLE VIII - 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: _________________________

ACKNOWLEDGMENT

STATE OF NEW YORK
COUNTY OF [COUNTY]

On the _____ day of ______________, 20___, before me, the undersigned, personally appeared [GRANTOR NAME(S)], personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

Tax Map Designation: Section [ ], Block [ ], Lot [ ]

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