Definitions

• AFFIDAVIT:  A document that gives a written or printed declaration or statement of facts, which is confirmed by an oath or affirmation.

 

•  ASSIGNMENT:  A document that transfers a loan or debt (Deed of Trust and Note) to another, which gives them the right to the money collected in payment of the debt.

 

•  ASSUMED NAME:  A document that files or puts on record a business name of an individual, partnership or corporation other than their own name. (Also known as Doing Business As or DBA)

 

•  CANCELLATION:  A document or process that revokes, removes or erases the debt on real estate indicated by the recording of a Deed of Trust. There are four methods of cancellation.

 

•  CERTIFICATE OF SATISFACTION:  A document drawn by the beneficiary, owner or holder of the note to cancel the Deed of Trust.

 

•  COVENANTS:  Covenants are usually drawn to list or give many stipulations as to how the real estate may be used or what may be built or put on the real estate.  (Also known as restrictive covenants)

 

•  DEED:  A document conveying realty. A writing signed by the grantor, whereby title to realty (real estate) is transferred.

 

•  DEED OF EASEMENT:  A document in which the owner of real estate gives another the right to use his land for a special purpose such as access across one’s property to get to another’s property.

 

•  DEED OF GIFT:  A deed executed and delivered without consideration (payment).

 

•  DEED OF RELEASE:  A conveyance by the trustees after payment or partial payment for divesting themselves of the legal title or title to part of the property to the original owner. It releases part of the land or collateral from the Deed of Trust so that it may be sold or developed.

 

•  DEED OF TRUST:  An instrument that secures the repayment of a sum of money or the performance of other conditions. This is a three-party document:  the borrower, the beneficiary, and the trustee or trustees who hold the legal title or control of the property.

 

•  LEASE:  An agreement between two parties (grantor and grantee) in which one contracts with the other to rent, use or possess, for a specified amount and period of time, real estate or buildings.

 

•  MODIFICATION DEED OF TRUST:  A document that alters, adds, or cancels some of the terms or stipulations but leaves the general purposes or effect of the document intact.

 

•  NOTICE OF FORECLOSURE:  A document recorded to notify the public of the foreclosure proceedings where property is being repossessed by the lender, usually for non-payment or non-performance of the conditions of the note and Deed of Trust.

 

•  NOTICE OF SATISFACTION:  A document drawn by the trustee or substitute trustee on a Deed of Trust to cancel the document.

 

•  PARTNERSHIP:  A voluntary contract between two or more competent persons to place their money, effects, labor and skills in business with the understanding that there will be a sharing of the profits and losses between them.

 

•  GENERAL PARTNERSHIP:  Two or more who share more or less equally in the investment, responsibility and profit and loss.  These are filed with the Register of Deeds office.

 

•  LIMITED PARTNERSHIP:  One or more general partners who conduct or run the business and have one or more special partners who are essentially only investors who share in the profits.  These are filed with the Secretary of State.

 

•  POWER OF ATTORNEY:  An instrument authorizing another to act as one’s agent or on one’s behalf.

 

•  QUITCLAIM DEED:  A deed of conveyance intended to pass partial title or interest in property.

 

•  REQUEST NOTICE:  A request by someone, usually a subsequent or second Deed of Trust and note holder to be notified of any sale or foreclosure on property to allow them to take action to collect their lien.

 

•  REVOCATION OF POWER OF ATTORNEY:  A document that removes or takes away the authority of a power of attorney.

 

•  RIGHT OF WAY:  The right of passage across another’s property.

 

•  Satisfaction of Security Instrument:  One of three ways to cancel deeds of trusts and mortgages. The  secured creditor in the security instrument may sign a “Satisfaction of Security Instrument”. The “Satisfaction of Security Instrument” must be signed by the secured party and acknowledged by a Notary Public and contain all the information required by G.S. 45-36.10 and G.S. 45-37(a)(7)

 

• SUBORDINATION AGREEMENT:  An agreement for a document to be placed in order behind or lower than a subsequently recorded document. (Example:  Agreement for a first lien Deed of Trust to be put behind or follow the second lien Deed of Trust.)

 

•  SUBSTITUTION OF TRUSTEE:  A document through which the beneficiary, owner, or holder of the note replaces or appoints a new trustee on a Deed of Trust.

 

•  Trustee’s Satisfaction of Deed of Trust: One of three ways to cancel deeds of trusts and mortgages. The “Trustee’s Satisfaction of Deed of Trust” must be signed by the Trustee or Substitute Trustee and acknowledged by a Notary Public and contain all the information required by G.S. 45-36.20 and G.S. 45-37(a)(7).

 

• WARRANTY DEED:  A deed in which the grantor binds himself and his heirs to warrant or defend to the grantee and his heirs the title conveyed against the claims of all persons. He warrants or guarantees the title to the grantee.