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Does California use a deed of trust?

If real property is utilized to secure a loan, it is usually achieved by executing a mortgage or, in California, a Deed of Trust. A mortgage is a document that allows the creditor, who is unpaid, to proceed to court to force the sale of the property to pay off the debt.

What is a grant deed in California?

A grant deed is a form of deed common in California, which contains implied warranties to the effect that the grantor has not previously conveyed or encumbered the property.

Why does California use deed of trust?

Prior to payment of the debt, the lender was entitled to possession of the property. Use of the deed of trust with power of sale was developed to get around some of the restrictions of the mortgage and the required judicial foreclosure, a time consuming lawsuit.

Does California use grant deed or warranty deed?

The laws of most states require the use of warranty or special warranty deeds, while the laws in a few states, including California, permit the use of grant deeds. Although a special warranty deed could be used in California, it is neither necessary nor likely to be used.

What is a grant deed used for in California?

The grant deed is used when a person who is on the current deed transfers ownership or adds a new owner. The grantor (donor or seller) promises that all rights to the property are being transferredthere are no hidden owners or easements.

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