Deed of Trust

DEED OF TRUST

State of Washington

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

SPACE ABOVE THIS LINE FOR RECORDER'S USE

Date: [DATE]
Auditor's File Number: _________________ (Recorder's Use)
Property Address: [PROPERTY ADDRESS, CITY, WA ZIP]
Assessor's Tax Parcel Number: [PARCEL 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]

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 irrevocably grants, bargains, sells, and conveys to Trustee, in trust, with POWER OF SALE, the following described real property situated in [COUNTY] County, Washington:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

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

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

THE TRUST PROPERTY IS NOT USED PRINCIPALLY FOR AGRICULTURAL PURPOSES.
☐ Check here if property IS used principally for agricultural purposes (judicial foreclosure required).

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 Trustee Qualifications. The Trustee named herein is qualified to serve under Washington law. Pursuant to RCW 61.24.020, no person, corporation, or association may be both trustee and beneficiary under the same deed of trust, except that any agency of the United States government may be both trustee and beneficiary.

2.2 Successor Trustee. Beneficiary may appoint a successor Trustee at any time by recording an instrument of appointment with the County Auditor where this Deed of Trust is recorded. The successor Trustee shall succeed to all title, powers, and duties of the original Trustee.

2.3 Trustee's Powers. Trustee shall have all powers necessary to carry out the purposes of this Deed of Trust, including but not limited to the power of sale.

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 on the Trust Property insured against loss by fire and other hazards. Insurance policies shall include a standard mortgage clause and name Beneficiary as loss payee.

3.3 Taxes and Assessments. Grantor shall pay before delinquency all taxes, assessments, and other 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.

3.7 Agricultural Use Statement. Grantor represents that the Trust Property is not used principally for agricultural purposes, as defined in RCW 61.24.030.

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 Options. Upon default, Beneficiary may elect to foreclose:
(a) By non-judicial trustee's sale under RCW Chapter 61.24; or
(b) By judicial foreclosure as provided by law.

NOTE: Deeds of trust conveying real property used principally for agricultural purposes may only be foreclosed judicially.

5.3 Requirements for Non-Judicial Foreclosure (RCW 61.24.030). Non-judicial foreclosure requires:
(a) The deed of trust contains a power of sale clause;
(b) The deed of trust and any assignments are recorded;
(c) The property is not used principally for agricultural purposes;
(d) The borrower is in default.

5.4 Notice of Default. Trustee shall give written notice of default to Grantor by:
(a) First class mail AND registered or certified mail;
(b) Posting a copy in a conspicuous place on the premises or personal service.

The Notice of Default must precede the Notice of Trustee's Sale by at least thirty (30) days.

5.5 Notice of Trustee's Sale. The Notice of Trustee's Sale must be recorded with the County Auditor at least 90 days prior to the sale date (per RCW 61.24.040). Where a pre-foreclosure letter is required under RCW 61.24.031, an additional 30 days applies, resulting in at least 120 days from recording to sale. The Notice must also be:
(a) Recorded with the County Auditor at least 90 days prior to the sale date (RCW 61.24.040);
(b) Mailed to Grantor and all parties entitled to notice;
(c) Posted on the Trust Property;
(d) Published in a legal newspaper once a week for four consecutive weeks.

5.6 Foreclosure Fairness Act (Residential Properties). For owner-occupied residential properties up to four units, Beneficiary must comply with Washington's Foreclosure Fairness Act (RCW 61.24.163), including:
(a) Providing borrowers the opportunity for mediation;
(b) Offering foreclosure counseling information;
(c) Meeting notice and timeline requirements.

5.7 Right to Cure. Grantor may reinstate the loan by paying all past-due amounts, late fees, and costs up to and including the eleventh (11th) day prior to the Trustee's Sale. After that date, the only option is to bid at the sale.

5.8 Conduct of Sale. The Trustee's Sale shall be conducted:
(a) On a Friday between 9:00 a.m. and 4:00 p.m.;
(b) At the place designated in the Notice of Trustee's Sale;
(c) By public auction to the highest bidder;
(d) For cash, cashier's check, or money order.

5.9 Trustee's Deed. On payment, the Trustee shall execute a Trustee's Deed to the purchaser. The deed shall recite facts showing compliance with all requirements of RCW Chapter 61.24 and this Deed of Trust, which recital shall be prima facie evidence of compliance.

5.10 Application of Proceeds. Trustee shall apply the proceeds of sale:
(a) First, to costs and expenses of the sale;
(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.

5.11 Deficiency Judgment. Non-judicial foreclosure generally does not permit deficiency judgments except under specific circumstances involving borrower misconduct (property damage or waste). Judicial foreclosure may permit deficiency judgments.

ARTICLE VI - RECONVEYANCE

6.1 Full Reconveyance. Upon written request of Beneficiary stating that all sums secured have been paid, and upon surrender of this Deed of Trust and the Note to Trustee for cancellation, Trustee shall reconvey the Trust Property without warranty.

6.2 Partial Reconveyance. Beneficiary may request partial reconveyance of any portion of the Trust Property upon partial payment of the debt.

6.3 Recording. The reconveyance shall be recorded with the County Auditor where the Trust Property is located.

ARTICLE VII - RECORDING REQUIREMENTS

7.1 Recording. This Deed of Trust shall be recorded with the County Auditor of [COUNTY] County, Washington.

7.2 Excise Tax Affidavit. The required Real Estate Excise Tax Affidavit shall be filed with recording.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Deed of Trust shall be governed by Washington 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 Request for Notice. Grantor hereby requests that copies of any Notice of Default and any Notice of Trustee's Sale be mailed to Grantor at the address above.

8.6 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: _________________________

ACKNOWLEDGMENT

STATE OF WASHINGTON
COUNTY OF [COUNTY]

I certify that I know or have satisfactory evidence that [GRANTOR NAME(S)] is/are the person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and purposes mentioned in the instrument.

DATED: _______________________________

_______________________________
Notary Public in and for the State of Washington
Residing at: ___________________________
My Commission Expires: _________________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

Assessor's Tax Parcel Number: [NUMBER]

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