Deed of Trust

DEED OF TRUST

Commonwealth of Virginia

Prepared by:
[ATTORNEY NAME], Esquire
VSB No. [NUMBER]
[ADDRESS]
[CITY, STATE ZIP]

Return to:
[NAME]
[ADDRESS]
[CITY, STATE ZIP]

Tax Map/Parcel No.: [TAX MAP NUMBER]
Consideration: $[AMOUNT]
Recordation Tax: $[AMOUNT]
Grantor's Tax: $[AMOUNT]

DEED OF TRUST

THIS DEED OF TRUST ("Deed of Trust") is made this [DAY] day of [MONTH], [YEAR], by and among:

GRANTOR/BORROWER:
[GRANTOR NAME(S)]
[ADDRESS]
[CITY, STATE ZIP]
(hereinafter called "Grantor")

TRUSTEE:
[TRUSTEE NAME]
[ADDRESS]
[CITY, STATE ZIP]
(hereinafter called "Trustee")

BENEFICIARY/LENDER:
[BENEFICIARY/LENDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
(hereinafter called "Beneficiary" or "Lender")

RECITALS

WHEREAS, Grantor is justly indebted to Beneficiary in the principal sum of [PRINCIPAL AMOUNT] DOLLARS ($[AMOUNT]), evidenced by a Promissory Note of even date herewith (the "Note"), with interest thereon, payable as provided in the Note, and with the final payment due on [MATURITY DATE]; and

WHEREAS, Beneficiary requires the execution of this Deed of Trust as security for the payment of the Note and the performance of all other obligations of Grantor to Beneficiary arising out of or related to the Note and this Deed of Trust;

NOW, THEREFORE, in consideration of the premises and for the purpose of securing (1) the payment of the indebtedness evidenced by the Note; (2) the payment of all other sums, with interest thereon, advanced by Beneficiary to protect the security of this Deed of Trust; and (3) the performance of the covenants and agreements of Grantor herein contained, Grantor does hereby grant, bargain, sell, and convey unto Trustee, in trust, with power of sale, the following described property located in [CITY/COUNTY], Virginia:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS, CITY, VA ZIP]

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water rights and stock, and all fixtures now or hereafter a part of the property.

TO HAVE AND TO HOLD the same unto Trustee, and Trustee's successors and assigns, in trust for the benefit of Beneficiary, subject to the terms and conditions set forth herein.

ARTICLE I - COVENANTS OF GRANTOR

Grantor covenants and agrees as follows:

1.1 Payment of Principal and Interest. Grantor shall promptly pay when due the principal and interest on the indebtedness evidenced by the Note and all other sums secured by this Deed of Trust.

1.2 Funds for Taxes and Insurance. Subject to applicable law, Grantor shall pay to Beneficiary on the day monthly payments are due under the Note, a sum sufficient to pay yearly taxes, assessments, and hazard insurance premiums.

1.3 Application of Payments. All payments received by Beneficiary shall be applied: first, to late charges due under the Note; second, to amounts payable for taxes, insurance, and other charges; third, to interest due; and fourth, to principal due.

1.4 Charges and Liens. Grantor shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property and shall promptly discharge any lien which has priority over this Deed of Trust.

1.5 Hazard Insurance. Grantor shall keep the improvements on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards for which Beneficiary requires insurance. Insurance policies shall include a standard mortgage clause and shall name Beneficiary as mortgagee.

1.6 Preservation, Maintenance, and Protection of the Property. Grantor shall keep the Property in good repair, shall not commit waste or permit impairment or deterioration of the Property, and shall comply with all laws affecting the Property.

1.7 Inspection. Beneficiary or its agent may make reasonable entries upon and inspections of the Property.

1.8 Condemnation. Any condemnation award or proceeds shall be applied to the sums secured by this Deed of Trust.

ARTICLE II - ASSIGNMENT OF RENTS

2.1 Assignment. Grantor hereby absolutely and unconditionally assigns and transfers to Beneficiary all the rents and revenues of the Property.

2.2 License to Collect. Beneficiary grants to Grantor a revocable license to collect and retain such rents and revenues as they become due and payable, provided there is no default under this Deed of Trust. Upon default, this license shall terminate automatically without notice.

ARTICLE III - TRUSTEE PROVISIONS

3.1 Trustee Qualifications. The Trustee named herein is qualified to serve as trustee under Virginia Code § 55.1-328.

3.2 Substitution of Trustee. Beneficiary, or the holders of greater than fifty percent (50%) of the monetary obligations secured hereby, may appoint one or more substitute trustees at any time by executing an instrument in writing, acknowledged and recorded in the clerk's office of the circuit court where this Deed of Trust is recorded, in accordance with Virginia Code § 55.1-325. The substitute trustee shall succeed to all the title, estate, rights, powers, and duties of the original Trustee.

3.3 Trustee's Duties. Trustee accepts this trust when this Deed of Trust, duly executed and acknowledged, is recorded. Trustee shall exercise the powers conferred herein in accordance with Virginia law.

3.4 Trustee's Fees. Grantor agrees to pay all fees and costs of Trustee for services rendered, including reasonable fees for conducting any sale under this Deed of Trust.

ARTICLE IV - DEFAULT AND FORECLOSURE

4.1 Events of Default. The following shall constitute Events of Default:
(a) Failure to make any payment required under the Note or this Deed of Trust when due;
(b) Failure to perform any covenant or agreement contained herein;
(c) Any representation or warranty proves to be materially false or misleading;
(d) Transfer of all or any part of the Property without Beneficiary's prior written consent (if due-on-sale applies);
(e) Bankruptcy, insolvency, or similar proceedings by or against Grantor.

4.2 Notice Requirements. Prior to any sale under this Deed of Trust, Trustee shall comply with the notice requirements of Virginia Code § 55.1-321:

For Owner-Occupied Residential Real Estate:

• Notice shall be given by certified mail or registered mail to the Grantor no less than sixty (60) days prior to the sale.

For All Other Deeds of Trust:

• Notice shall be given by certified mail or registered mail to the Grantor no less than fourteen (14) days prior to the sale.

Additional Notice Requirements:

• Notice by ordinary mail to lienholders, property owners' associations, and condominium unit owners' associations whose interests appear of record within the applicable time frame.

4.3 Advertisement of Sale. The sale shall be advertised in a newspaper having general circulation in the city or county where the Property is located:

• Once a week for four (4) successive weeks for improved real estate; or
• Once a week for two (2) successive weeks for unimproved real estate.

The last advertisement shall appear no more than seven (7) days before the sale.

4.4 Conduct of Sale. The Trustee may sell the Property at public auction to the highest bidder for cash at the time and place designated in the notice. Written one-price bids may be made and shall be received by the Trustee from the Beneficiary or any other person for entry by announcement at the sale, pursuant to Virginia Code § 55.1-324.

4.5 Deposit Requirements. The Trustee may require of any bidder at any sale a cash deposit of as much as ten percent (10%) of the sale price, unless the Deed of Trust specifies a higher or lower maximum.

4.6 Application of Proceeds. Pursuant to Virginia Code § 55.1-324, the Trustee shall apply the proceeds of sale as follows:
(a) First, to discharge the expenses of executing the trust, including a reasonable commission to the Trustee;
(b) Second, to discharge all taxes, levies, and assessments with priority over the Deed of Trust lien;
(c) Third, to discharge remaining debts and obligations secured by this Deed of Trust and any inferior liens in their order of priority;
(d) Fourth, the residue shall be paid to the Grantor or the Grantor's assigns.

4.7 Report to Commissioner of Accounts. Within six (6) months after the date of sale, Trustee shall file an account of the sale with the Commissioner of Accounts as required by Virginia Code § 64.2-1309.

4.8 Purchaser Obligations. Any purchaser at a foreclosure sale shall provide certification that such purchaser shall pay off any priority security instruments no later than ninety (90) days from the date that the Trustee's deed conveying the Property is recorded.

ARTICLE V - RECONVEYANCE

5.1 Release. Upon full payment and satisfaction of all sums secured by this Deed of Trust, Beneficiary shall request Trustee to release this Deed of Trust by executing and delivering to Grantor a certificate of satisfaction or a deed of release suitable for recording.

5.2 Timing. The release shall be executed and recorded within a reasonable time after satisfaction of the debt, as required by Virginia law.

ARTICLE VI - RECORDING REQUIREMENTS

6.1 Recording. This Deed of Trust shall be recorded in the Clerk's Office of the Circuit Court of [CITY/COUNTY], Virginia.

6.2 Prepared by Statement. Virginia Code § 17.1-223 requires that this instrument bear the certification of an attorney at law that the instrument has been prepared by an attorney or under an attorney's supervision, or that the instrument was prepared by one of the parties named in the instrument.

6.3 Taxes. All applicable recordation taxes and grantor's taxes shall be paid at the time of recording.

ARTICLE VII - MISCELLANEOUS PROVISIONS

7.1 Governing Law. This Deed of Trust shall be governed by the laws of the Commonwealth of Virginia.

7.2 Successors and Assigns. This Deed of Trust shall bind and benefit the heirs, executors, administrators, successors, and assigns of the parties hereto.

7.3 Severability. If any provision of this Deed of Trust is held invalid, all other provisions shall remain in full force and effect.

7.4 Notices. All notices shall be in writing and shall be deemed given when delivered personally, sent by overnight courier, or mailed by certified mail, return receipt requested.

7.5 Waiver. No waiver of any provision hereof shall be effective unless in writing and signed by the waiving party.

7.6 Captions. Headings are for convenience only and shall not affect interpretation.

7.7 Entire Agreement. This Deed of Trust and the Note constitute the entire agreement of the parties regarding the subject matter hereof.

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):

_______________________________ [SEAL]
[GRANTOR NAME]
Date: _________________________

_______________________________ [SEAL]
[GRANTOR NAME]
Date: _________________________

ACKNOWLEDGMENT

COMMONWEALTH OF VIRGINIA
[CITY/COUNTY] OF _______________________, to-wit:

The foregoing instrument was acknowledged before me this _____ day of ______________, 20___, by [GRANTOR NAME(S)].

_______________________________
Notary Public
My Commission Expires: ___________
Notary Registration Number: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

The land referred to herein is situated in [CITY/COUNTY], Commonwealth of Virginia, and is described as follows:

[INSERT COMPLETE LEGAL DESCRIPTION - METES AND BOUNDS OR RECORDED PLAT REFERENCE]

Tax Map/Parcel Number: [NUMBER]
GPIN (if applicable): [NUMBER]

ATTORNEY CERTIFICATION

I, [ATTORNEY NAME], an attorney licensed to practice law in the Commonwealth of Virginia (VSB No. [NUMBER]), hereby certify that this instrument was prepared by me or under my supervision.

_______________________________
[ATTORNEY NAME], Esquire
Virginia State Bar No. [NUMBER]

This document prepared by:
[ATTORNEY NAME], Esquire
[FIRM NAME]
[ADDRESS]
[PHONE]
[EMAIL]