Deed of trust conveying the property to trustee with power of sale and pay of debts for repayment whereof the property is offered as security with condition that in case of timely repayment of the debts this instrument shall be treated as null and void
Take notice by this instrument that we....... [property owners] and...... [contractor], all of [Place].... have this day entered into the following contract:
....................[property owners] desire that a.................. be erected on the property owned by them, situated at.... [street address], ..................[city], known as...... Now, therefore, in consideration of the facts,..................[contractor,] has covenanted and agreed with..................[property owners], that he or she will make, erect, build and finish, in a good, substantial and workmanlike manner within.............. days from the date of this contract, the.................. and improvement on the above-described property, performing or causing to be performed all the labour in the erection of it, and furnishing all the material of any kind necessary to be used in the erection of it, and paying all expenses incident to the labour and furnishing of material, the dwelling-house and improvements to be built of good; substantial material and to be erected strictly according to the plans and specifications this day agreed upon by the parties to this contract and made a part of this contract. .......[Property owners], in consideration of the foregoing, agree to pay to..... [contractor] the sum of Rs....., as follows: Rs....., bearing interest at the rate of......% per annum from...... until paid. Payable...., all past due principal and interest bearing interest from maturity. until paid at the rate of..................% per annum and providing for ...............% attorney.s fees on the amount of principal and interest due on it if placed in the hands of an attorney for collection, or if collected through the probate court or other judicial proceedings, and to secure the payment of the indebtedness and notes, a valid and subsisting lien is created by this instrument for the benefit of......[contractor], on the above described property and all improvements, additions, fixtures and appurtenances now on the property or subsequently to be placed there. And...... [property owners], to secure and enforce the payment of the indebtedness and of the further consideration, uses, purposes and trusts set forth here, have granted, bargained and sold, and by this instrument grant, bargain, sell, convey and confirm, to...... as trustee, and also to the substitute trustee, as provided bellow, all of the above described property and improvements. To have and to hold the premises unto.... [trustee], and to his or her successors and assigns forever, covenanting and agreeing to forever warrant and defend the premises mentioned above, and every part of the premises, unto the trustee named here, and to the substitute trustee, and to the assigns of any trustee named here, against all persons who lawfully claim the same for and on the following trusts, terms, conditions and covenants, namely: That.................. [property owners] are justfy indebted to.................. [contractor], as evidenced by the above mentioned indebtedness and notes.
Now, if.................. [property owners] make prompt payment of the indebtedness, both principal and interest, as it becomes due and payable, then this conveyance shall become null and void and of no further force and effect, and shall be released by the holder of the indebtedness, such release to be at the expense of.................. [property owners]. But if.................. [property owners] make default in the punctual payment of the indebtedness, or any part of it, principal or interest, as the same becomes due and payable, or fail to pay as it becomes due and payable, all taxes and special assessments, either state, central, municipal or otherwise, now chargeable to or assessed against or hereafter chargeable to or assessed against the above described property, or fail to keep at all times the improvements on the property insured against fire and earthquake in favour of any holder of the indebtedness secured by this instrument (who shall hold the policies of insurance) in the full insurable value of the improvements in solvent and reputable insurance companies acceptable to the holder of the indebtedness, or fail to keep the improvements in good condition and repair or permit waste, or do or permit to be done any act or thing that would tend to depreciate the value of the above described property, or fail to pay, as the same shall become due and payable (all taxes that shall be chargeable to or assessed against this mortgage note or notes secured by this instrument, which tax payments on this mortgage note or notes secured by this instrument, together with the interest payments, are not to exceed...% per annum on the principal amount of the indebtedness secured by this instrument,
then, and in any such case, the whole amount of the unpaid indebtedness secured by this instrument, at the option of...... [contractor] or other holder of this instrument, immediately mature and become payable, and it shall then,
or at any later time when the same or any part of it remains unpaid, be the duty of..................[trustee], and of the trustee.s successor or substitute as provided here on the request of..................[contractor] or other holder of the indebtedness secured by this instrument or any part of it (which request is presumed by this instrument) to enforce this trust; and after advertising the time, place and terms of the sale of all the above conveyed and described property for at least 21 days successively next before the day of the sale, by posting written or printed notices of it at three public places in.................., one of which shall be at the court-house door of the........ Court, which notices may be posted by the trustee acting or by any other person, to sell the same in accordance with such advertisement, at public auction, in front of the door of the court-house of... Court, in..., on the first Tuesday in any month between the hours of 10 o.clock a.m. and 4 o.clock p.m. to the highest bidder for cash-selling all the property above conveyed as an entirety or in parcels, as the trustee acting may electand make due conveyance to the purchaser or purchasers, with general warranty, binding.................. [property owners] and their heirs and assigns; and out of the money arising from the sale, the trustee acting shall pay, first, all the expenses of advertising, sale and conveyance, including a commission of five percent to himself or herself and then to.................. [contractor], or any other holder of the indebtedness, the full amount of principal, interest and attorneys. fees due and unpaid on the indebtedness as set forth above, rendering the balance of the purchase money, if any, to.................. [property owners], their heirs or assigns; and the sale shall forever be a perpetual bar against............... [property owners], their heirs and assigns, and.................. [contractor], or other holder of the indebtedness, shall have the right to purchase at such sale, being the highest bidder. It is expressly understood and agreed that the recitals in the conveyance at the sale to the purchaser shall be full evidence of the truth of the matters stated in it, and all prerequisites to the sale shall be conclusively presumed to have been performed and the sale and conveyance shall be conclusive against...... [property owners], their heirs and assigns whether the prerequisites shall have been performed or shall not have been performed. It is further expressly stipulated and agreed that in case of the absence, death, inability, refusal or failure of the trustee named here to act, a successor and substitute may be named, constituted and appointed by..... [contractor], or other holder of the indebtedness, or any part of it, without other formality than an appointment and designation in writing, and this conveyance shall vest in him or her, as trustee, the estate and title in all the premises, and he or she shall thereupon hold, possess and execute all the title, rights, powers, and duties conferred by this instrument on the trustee named here, and his or her conveyance to the purchaser shall be equally valid and effective; and the right to appoint a successor or substitute trustee shall exist as often and whenever any trustee, original or substitute, cannot or will not act. It is expressly agreed and understood that to secure the payment of the promissory note for the sum of Rs......., ................... [contractor] retains and shall have a valid existing mechanic.s, materialmen.s, labourer.s and contractor.s lien, equities, securities and interest in and to the above described property and the.....to be erected there, and the improvements now on and to be placed on the land, and it is agreed and understood that the promissory note may be assigned, and the assignee or purchaser shall have and be subrogated to all the rights and equities of.................. [contractor], to have and to hold the same, together with all the rights, and appurtenances to the same belonging or in anywise incident or appertaining. It is further agreed that failure to complete the improvements according to this contract shall not defeat the indebtedness and lien, but in that case the indebtedness and lien on the premises and improvements shall exist in favour of.................. [contractor], his or her heirs and assigns for such contract price, less such an amount as will be reasonably necessary to complete the improvements according to this contract. It is also further agreed and stipulated that.....[ property owners] shall and will, at their own proper cost and expense, keep the property and premises described here and on which a lien is created by this instrument, in good repair and condition, and pay and discharge, as they are or may become payable, all and every, all taxes due and to become due on that property and premises, and shall keep the property fully insured in some good and responsible fire insurance company, approved by.................. [contractor], or the assignee or holder of the note, to whom the loss, if any, shall be payable, and by whom the policy or policies shall be kept. And in case of default made by...... [property owners] in the performance or any of the foregoing stipulations, the same may be performed by...... [contractor], the assignee or holder of the note, for and at the expense of...... [property owners], and any and all expenses incurred and paid in so doing shall be payable by..... [property owners] to the payee, with interest at the rate of 10 per cent per annum from the date when the same was incurred or paid, and shall stand secured and payable by and under this contract in like manner with the other indebtedness mentioned here. It is further specially agreed and understood that the entering by parties of the first part into possession of the improvements, or the acknowledgement by them of completion of this contract as well as any other sufficient proof, shall be conclusive evidence that all duties and obligations of....... [contractor] have been fully and completely performed. This contract is executed and delivered before any labour or material for the erection and construction of the improvements has been furnished.
Executed this the...... day of...... [month]....... [year].
[Signatures of property owners]
[Signature of contractor]
Before me, the undersigned authority, a notary public in and for [Place]............, on this day personally appeared....., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me thathe or she executed the same for the purposes and consideration expressed in it.
Given under my hand and seal of office, this.................. day of............... [month], .................. [year]. ..................., Notary Public
Before me, the undersigned authority, a notary public in and for [Place] .................. on this day personally appeared.................. and.................., both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration expressed there.
Given under my hand and seal of office, this...... day of...... [month]...... [year].
......, Notary Public
Before me the undersigned, a notary public in and for [Place].................., on this day personally appeared.................., known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act of such corporation for the purposes and consideration therein expressed and in the capacity therein stated. Given under my hand and seal of office, this the.................. day of.................. [month], ......[year].......,
Notary Public
Whereas, on the.................. day of.................. [month],.................. [year], ...... [owner] made and entered into a construction contract with..... [contractor] for the erection and construction of certain improvements on real property belonging to owner, situated in...... and described as follows:
[Description of Property]
And whereas, by the terms of the construction contract the owner promised and agreed to pay to the contractor certain sums of money evidenced by a note and to secure the payment of it to the contractor gave a mechanic.s, materialman.s, labourer.s and contractor.s deed of trust lien on the above-described premises, which liens were granted for the purpose of securing the contract price of the inprovements to be erected on the premises described above, and any additions to the premises caused by alterations or additions, and any portion of the improvements actually erected; And whereas, the contractor desires to fulfil the contract but to assign to the transferee named here all notes and evidences of debt which the contractor holds or to which the contractor may become entitled during his or her performance of the contract and all liens granted lo secure it; Now, therefore, in consideration of Rs...., receipt of which is acknowledged, I,..................., contractor, transfer and assign unto..... all indebtedness and evidences of indebtedness, owing or to accrue in my favour under the liens and deed of trust mentioned above, including any note or notes taken for additions to the contract price, and convey to...... liens and deed of trust and all right, title and interest owned by me in and to the premises described above. To have and to hold unto the......, its successors, heirs and assigns forever. xecuted this the...... day of....... [month],.................. [year].
[Acknowledgment]
