what is a corporate assignment of security deed

Deed Of Trust: What It Is And How It Works

Updated: Mar 2, 2023, 3:15am

Buying property usually comes with an avalanche of paperwork. It can be a confusing process, especially when it comes to knowing the difference between the various documents you sign. If there’s one contract that’s important to understand, however, it’s the deed of trust.

Depending on your lender and the state you live in, you may or may not need a deed of trust when financing a home purchase. Here’s what you should know about this contract and how it differs from a mortgage .

What Is a Deed Of Trust?

When you finance the purchase of a property, you will sign either a mortgage or deed of trust—but not both. You can take out a mortgage in all 50 U.S. states, while a deed of trust is only available in some states.

A deed of trust is a legal document that secures a real estate transaction. It works similarly to a mortgage, though it’s not quite the same thing. Essentially, it states that a designated third party holds legal title to your property until you’ve paid it off according to the terms of your loan. Deeds of trust are recorded in public records just like a mortgage.

How Does a Deed of Trust Work?

A deed of trust exists so that the lender has some recourse if you don’t pay your loan as agreed. There are three parties involved in a deed of trust: the trustor, the beneficiary and the trustee.

The three parties involved in a deed of trust for a real estate transaction are a:

• Trustor. This is the person whose assets are being held in the trust, also known as the borrower (i.e., you). The title to your home is held by the trust until the loan is paid off. Even so, you remain the equitable owner as long as you keep paying the loan according to the terms outlined in the deed of trust. That means you enjoy all the benefits of being the homeowner, such as the right to live there and gain equity, even though you aren’t the legal title holder.
• Beneficiary. The beneficiary is the party whose investment interest is being protected. Usually, that’s the lender, though it also can be an individual with whom you have a contract.
• Trustee. The trustee holds the legal title of the property while you’re making payments on the loan. Trustees often are title companies, but not always. Once you’ve paid off your loan, the trustee is responsible for dissolving the trust and transferring the title to you.

If you sell the property before it’s paid off, the trustee will use proceeds of the sale to pay the lender the remaining balance (you keep the profits). If you fail to meet your payment obligations and default on the mortgage, the property would go into foreclosure , and the trustee would be responsible for selling the property.

What Is Included in a Deed of Trust

A deed of trust includes many important details about your property, loan and related terms and conditions—much of the same information you would find in your mortgage. Typically, you’ll find the following outlined in a deed of trust:

• The names of the parties involved (the trustee, trustor and beneficiary)
• The original loan amount and repayment terms
• A legal description of the property
• The inception and maturity dates of the loan
• Various clauses, such as acceleration and alienation clauses
• Any riders regarding the clauses outlined

It’s common for a deed of trust to include acceleration and alienation clauses. If you’re delinquent on your loan, it can trigger the acceleration clause—essentially a demand for immediate repayment of the loan. Depending on the terms, this can happen after missing just one payment, though lenders often give a few months of leeway to allow the borrower to catch up on payments. If you fail to do so under the terms outlined in the acceleration clause, the next step is formal foreclosure proceedings.

An alienation clause is also known as a due-on-sale clause and it prevents anyone who buys the property to take on the loan under its current terms. Instead, the alienation clause would dictate that the loan must be paid in full if you sell the property.

Depending on your state, the deed of trust may also include a power of sales clause. This allows for a much faster foreclosure process than if your lender had to involve the state courts in a judicial foreclosure. That said, you won’t be foreclosed on overnight under a power of sales clause; the exact process differs by state and lender. Still, if you’re facing a nonjudicial foreclosure, it can happen in a matter of months. If you want to formally fight the foreclosure, you’ll need to hire a lawyer.

States that allow power of sale foreclosures include: Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Georgia, Hawaii, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia and Wyoming.

Faster, easier mortgage lending

Check your rates today with Better Mortgage.

Deed of Trust Vs. Mortgage

The terms “deed of trust” and “mortgage” are often used interchangeably, but they’re really two different things. That said, there are also some similarities. To review, here are the key ways a mortgage and deed of trust are similar as well as different.

Similarities

• Public record: Both documents are recorded with the county clerk.
• Subject to state law: The exact terms of a mortgage or a deed of trust depend on the local state law.
• Contracts, not loans: Neither document serves as the actual loan agreement; a deed of trust or mortgage is a contract that places a lien on your property and dictates how your lender can repossess the property through foreclosure.

Differences

• Parties involved: A mortgage is an agreement between a borrower and lender, while a deed of trust involves a trustor, beneficiary and trustee.
• Foreclosure type: A mortgage requires a judicial foreclosure, while a deed of trust allows for a nonjudicial foreclosure.
• Foreclosure timeline: Judicial foreclosure on a mortgage can be a lengthy process, while nonjudicial foreclosure through a deed of trust is much faster.

What’s the Advantage of a Trust Deed Over a Mortgage?

If the borrower defaults, a trust deed makes it possible for the lender to sell the property without having to go to court. With a mortgage, the lender has to file a foreclosure claim in court and secure a judge’s approval to sell the property. This can mean a lot of expenses for both the borrower and the lender.

If you are investing in a real estate project, a trust deed also has a few advantages over a mortgage. This is because the investor is considered the lender in the transaction, and their name is recorded on the trust deed as such. The investor can receive interest on their “loan” and the principal is repaid in full once the property has been built.

Warranty Deed Vs. Deed of Trust

Both a warranty deed and deed of trust are used to transfer the title of a property from one person to another. However, the difference between these two contracts is who is protected. As you now know, a deed of trust protects the beneficiary (lender). A warranty deed, on the other hand, protects the property owner.

When a property title is transferred with a warranty deed, ownership goes from the seller (also known as the grantor) to the buyer (also known as the grantee). The warranty deed guarantees that the previous owners, or grantor, had full ownership of the property and right to transfer it. In other words, it promises that you won’t inherit any liens or future claims against the property. It provides peace of mind that you own the property outright once the title is in your name.

Are Trust Deeds a Good Idea?

Trust deeds could be a good idea if you are an investor searching for options to earn passive income, while also being protected via the deed. However, investing in real estate is unpredictable and returns are never guaranteed. A trust deed does not reduce the probability of default or ensure that you will recoup your initial investment.

Consult with a financial advisor or investment professional before going down this route.

Personal finance writer Casey Bond contributed to this article.

Get Forbes Advisor’s ratings of the best mortgage lenders, advice on where to find the lowest mortgage or refinance rates, and other tips for buying and selling real estate.

Frequently Asked Questions (FAQs)

What is an assignment of deed of trust.

An assignment of trust deed is necessary if a lender sells a loan secured by a trust deed. It assigns the trust deed to whoever buys the loan (such as another lender), granting them all the rights to the property. It is recorded along with the original, making it a matter of public record.

What happens with the deed of trust after you pay off your mortgage?

Once you pay off your loan, the trustee is responsible for releasing the trust and transferring the title to you. You now have full ownership of the home.

Can you sell a house with a deed of trust?

Yes, you can. However, if you are selling the house for less than the loan amount, you will need the lender’s approval. Once the property is sold, the trustee uses the proceeds to pay the lender what they are still owed. The borrower then gets any money that is left over.

How long does a deed of trust last?

A deed of trust, like a mortgage, typically has a maturity date, which is when the loan must be paid off in full. That date will vary transaction to transaction. Sometimes a deed of trust won’t have a maturity date. In this scenario, state law dictates the number of years a deed of trust lasts, anywhere from 10 to 60 years after it was recorded.

What is a purchase money deed of trust?

A purchase money deed of trust secures the funds used to buy the property. It also gives the buyer priority over any liens or encumbrances against them

Does a deed of trust show ownership?

No. A deed of trust is a legal document that secures a real estate transaction. It only shows that a designated third party holds legal title—i.e. ownership—to your property until you’ve paid it off, according to the terms of your loan.

• Best Mortgage Lenders
• Best Online Mortgage Lenders
• Best Construction Loan Lenders
• Best Reverse Mortgage Companies
• Best Mortgage Refinance Companies
• Best VA Loan Lenders
• Best Mortgage Lenders For First-Time Buyers
• Best USDA Lenders
• Current Mortgage Rates
• Current Refinance Rates
• Current ARM Rates
• VA Loan Rates
• VA Refinance Rates
• Mortgage Calculator
• Cost Of Living Calculator
• Cash-Out Refinance Calculator
• Mortgage Payoff Calculator
• Loan Prequalification Calculator
• Mortgage Refinance Calculator
• Zillow Home Loans
• Mr Cooper Mortgage
• Rocket Mortgage
• Sage Mortgage
• Veteran United Home Loans
• Movement Mortgage
• Better Mortgage
• Pay Off Mortgage Or Invest
• Things To Know Before Buying A House
• What Is Recasting A Mortgage?
• After You Pay Off Your Mortgage
• When Should You Refinance Your Mortgage?
• How To Choose A Mortgage Lender?
• Will Interest Rates Go Down In 2024?
• Cost Of Living By State
• Will Housing Market Crash In 2024?
• Best Cities To Buy A House In 2024
• Average Down Payment On a House In 2024
• Largest Mortgage Lenders In The US

Next Up In Mortgages

• Best Mortgage Lenders Of August 2024
• Best Mortgage Lenders For First-Time Homebuyers Of August 2024
• How Much House Can I Afford? Home Affordability Calculator
• Mortgage Calculator: Calculate Your Mortgage Payment
• Rocket Mortgage Review
• USAA Mortgage Review

Mortgage Rates Today: August 21, 2024—Rates Remain Fairly Steady

Mortgage Rates Today: August 20, 2024—Rates Remain Fairly Steady

Mortgage Rates Today: August 19, 2024—Rates Remain Fairly Steady

Mortgage Rates Today: August 15, 2024—Rates Remain Fairly Steady

Mortgage Rates Today: August 14, 2024—Rates Remain Fairly Steady

Mortgage Rates Today: August 13, 2024—Rates Move Up

Brai is the founder of SW4 Insights, a public policy advisory firm based in Washington D.C. He has over a decade of experience as a journalist and consultant covering finance and economic policy, with a particular focus on distilling complex topics to inform readers' decision-making.

• Name Search
• Browse Legal Issues
• Browse Law Firms

Security Interests in Georgia

This article was edited and reviewed by FindLaw Attorney Writers | Last reviewed March 26, 2008

Legally Reviewed

This article has been written and reviewed for legal accuracy, clarity, and style by  FindLaw’s team of legal writers and attorneys  and in accordance with  our editorial standards .

Fact-Checked

The last updated date refers to the last time this article was reviewed by FindLaw or one of our  contributing authors . We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please  contact an attorney in your area .

A material component of the wholesale marketing of petroleum products is the advancement of credit to customers. In conjunction with the advancement of credit, it is appropriate to secure the credit advanced to the greatest extent possible. Methods available for securing credit advances include, but are not limited to obtaining: security deeds, UCC Financing Statements and security agreements, personal guarantees, assignments of leases, and assignments of rents or other contracts. Each of these mentioned security and collateralization vehicles will be briefly discussed hereinafter:

• Security Deed. A security deed is a conveyance of land to secure a debt. A security deed, as opposed to a mere mortgage, passes legal title to the land while reserving unto the debtor the equitable title to use and enjoy the conveyed land subject to compliance with debt obligations. Security deeds must be recorded in the county where the land is located. Although there is no specific time within which such deeds must be filed, the failure to timely record the deed to secure debt may affect priority and therefore the ability to enforce the debt against the subject property. Terms, which should be included within your form deed to secure debt, include the following: i) Parties, legal description and description of debt secured; ii) Provisions for payment of attorney's fees; iii) Rates of interest applicable to the deed to secure debt in the event of default; iv) Ability and procedure of exercise of nonjudicial foreclosure; v) A future advance clause. A first priority security deed on a valuable parcel of real property usually represents the best, most secure collateral for a debt.
• Security agreements and UCC Financing Statements. Whereas a security deed is utilized for real property to secure an indebtedness, in the event the creditor desires to include personal property or articles which may not be regarded as fixtures as collateral, the creditor will need to obtain a security agreement and UCC Financing Statement. To have a binding interest in personalty, it is required that the financial statement filing be on the forms prescribed by the Georgia Superior Court Clerks Cooperative Authority. Further, the filing must disclose the names and addresses of both parties, be signed by the Debtor and indicate the type and items of property which constitute the collateral subject tot he filing. Be aware that UCC-1 Financing Statements lapse after five (5) ears, if no continuation certificate is filed. In this regard, since many supply agreements have terms greater than five (5) ears, it is necessary to keep track of the filings and assure that continuation statements are filed as necessary in order to prevent lapse and loss of enforceability of security agreements.
• Personal Guarantees In the event the customer is a corporation, it is advisable to obtain personal guarantees from the principals of the corporation. Debt of corporations are generally not enforceable or recoverable against owners, officers, or employees of corporations. Your guaranty agreements, at a minimum, include the following provisions: i) Unconditional guaranty of prompt payment; ii) Reference the agreements from which the liability arises; iii) A waiver of notice of acceptance, presentment for payment, demand for payment, protest, notice of protest and notice of nonpayment; iv) The right to extend or renew the indebtedness without the notice or consent of the guarantors; v) That the guarantors may be sued jointly or individually without first or contemporaneously suing or otherwise seeking or proceeding to collect against the primary obligor.
• Conditional Assignment of Lease. Where the marketer is making substantial improvements or has a valuable legal interest in property, which is leased to the customer, it is recommended that the supplier require a conditional assignment of leases. The purpose of this document is two fold: i) in the event the customer defaults under the lease agreement, it allows the supplier to cure the event of default to prevent the lease from being terminated and the supplier loosing all rights to the premises; and ii) if drafted appropriately, it may allow the supplier to step into the place of the tenant under the lease and operate the premises.
• Assignment of Rents and/or other Contracts. Similar to the assignment of leases, it may be appropriate under certain circumstances to obtain an assignment of rent or other contracts in order to secure indebtedness. The purpose of these documents is to allow the creditor to either obtain proceeds under contracts in the event of default, or to step into the position of the debtor and enjoy the benefits to be received from the contracts, which are assigned. Security deeds, security agreements, guarantees and assignments are not a substitute for leases, written supply agreements and other documents evidencing the agreements between the parties. Such security documents are supplemental to any such agreements. In today's market place where we have experienced increased bankruptcy filings, numerous retailers of foreign citizenship and origin who in ordinary cases are difficult to enforce and collect judgment against, increased sale and transfer of retail outlets, and increased incidents of default on payment obligations, it is necessary to review business practices and take all possible steps to secure to the greatest extent possible any credit advances made to customers. In a default situation, the ability to collect all or any portion of outstanding indebtedness is directly related to the amount of collateral, which has been obtained by previously entered into security protection documentation.

Thank you for subscribing!

FindLaw Newsletters Stay up-to-date with FindLaw's newsletter for legal professionals

The email address cannot be subscribed. Please try again.

Learn more about FindLaw’s newsletters, including our terms of use and privacy policy.

• Search Search Please fill out this field.

What Is a Trust Deed?

Understanding trust deeds, trust deed vs. mortgage, what is included in a trust deed, foreclosures and trust deeds.

• Investing in Trust Deeds
• Real-World Example

The Bottom Line

• Personal Finance

Trust Deed: What It Is, How It Works, Example Form

• Foreclosure: Definition, Process, Downside, and Ways To Avoid
• Avoid Foreclosure
• Workout Agreement
• Mortgage Forbearance Agreement
• Short Refinance
• Pre-foreclosure
• Deliquent Mortgage
• How Many Missed Mortgage Payments?
• When to Walk Away
• Phases of Foreclosure
• Judicial Foreclosure
• Sheriff's Sale
• Your Legal Rights in a Foreclosure
• Getting a Mortgage After Foreclosure
• Buying Foreclosed Homes
• Investing in Foreclosures
• Investing in REO Property
• Buying at an Auction
• Buying HUD Homes
• Absolute Auction
• Bank-Owned Property
• Deed in Lieu of Foreclosure
• Distress Sale
• Notice of Default
• Other Real Estate Owned (OREO)
• Power of Sale
• Principal Reduction
• Real Estate Owned (REO)
• Right of Foreclosure
• Right of Redemption
• Tax Lien Foreclosure
• Trust Deed CURRENT ARTICLE
• Voluntary Seizure
• Writ of Seizure and Sale
• Zombie Foreclosure

Investopedia / Danie Drankwalter

A trust deed —also known as a deed of trust —is a document sometimes used in real estate transactions in the U.S. It is a document that comes into play when one party has taken out a loan from another party to purchase a property. The trust deed represents an agreement between the borrower and a lender to have the property held in trust by a neutral and independent third party until the loan is paid off.

Although trust deeds are less common than they once were, some 20 states still mandate the use of one, rather than a mortgage , when financing is involved in the purchase of real estate. Trust deeds are common in Alaska, Arizona, California, Colorado, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Tennessee, Texas, Virginia, and West Virginia.

A few states—such as Kentucky, Maryland, and South Dakota—allow the use of both trust deeds and mortgages.

Key Takeaways

• In financed real estate transactions, trust deeds transfer the legal title of a property to a third party—such as a bank, escrow company, or title company—to hold until the borrower repays their debt to the lender.
• Trust deeds are used in place of mortgages in several states.
• Investing in trust deeds can provide a high-yielding income stream.

A trust deed is a transaction between three parties:

• Lenders , officially known as beneficiaries . These are the interests a trust is supposed to protect.
• A borrower , otherwise known as a trustor . This is the person who establishes a trust.
• A trustee , a third party charged with holding the entrusted property until a loan or debt is paid for in full.

In a real estate transaction—the purchase of a home, say—a lender gives the borrower money in exchange for one or more promissory notes linked to a trust deed. This deed transfers legal title to the real property to an impartial trustee , typically a title company, escrow company, or bank, which holds it as collateral for the promissory notes . The equitable title—the right to obtain full ownership—remains with the borrower, as does full use of and responsibility for the property.

This state of affairs continues throughout the repayment period of the loan. The trustee holds the legal title until the borrower pays the debt in full, at which point the title to the property transfers to the borrower. If the borrower defaults on the loan, the trustee takes full control of the property.

Trust deeds and mortgages are both used in bank and private loans for creating liens on real estate, and both are typically recorded as debt in the county where the property is located. However, there are some differences.

Number of Parties

A mortgage involves two parties: a borrower (or mortgagor) and a lender (or mortgagee). When a borrower signs a mortgage, they pledge the property as security to the lender to ensure repayment.

In contrast, a trust deed involves three parties: a borrower (or trustor), a lender (or beneficiary), and the trustee. The trustee holds title to the lien for the lender's benefit; if the borrower defaults, the trustee will initiate and complete the foreclosure process at the lender's request.

Type of Foreclosure

In the event of default, a deed of trust will result in different foreclosure procedures than a mortgage. A defaulted mortgage will result in a judicial foreclosure, meaning that the lender will have to secure a court order. Trust deeds go through a non-judicial foreclosure, provided that they include a power-of-sale clause.

Judicial foreclosures are more expensive and time-consuming than non-judicial foreclosures. This means that in states that allow them, a deed of trust is preferable to a mortgage from the lender's point of view.

Contrary to popular usage, a mortgage is not technically a loan to buy a property; it's an agreement that pledges the property as collateral for the loan.

A deed of trust will include the same type of information stated in a mortgage document, such as:

• The identities of the borrower, lender, and trustee
• A full description of the property to be placed in trust
• Any restrictions or requirements on the use of the property while it is in trust
• The terms of the loan, including principal, monthly payments, and interest rate
• The terms of any late fees and penalties in the event of repayment

In addition, a trust deed will also include a power of sale clause that gives the trustee the right to sell the property if the borrower defaults.

Mortgages and trust deeds have different foreclosure processes. A judicial foreclosure is a court-supervised process enforced when the lender files a lawsuit against the borrower for defaulting on a mortgage. The process is time-consuming and expensive.

Also, if the foreclosed property auction doesn't bring in enough money to pay off the promissory note, the lender may file a deficiency judgment against the borrower, suing for the balance. However, even after the property is sold, the borrower has the right of redemption : they may repay the lender within a set amount of time and acquire the property title.

In contrast, a trust deed lets the lender commence a faster and less expensive non-judicial foreclosure, bypassing the court system and adhering to the procedures outlined in the trust deed and state law. If the borrower does not make the loan current, the property is put up for auction through a trustee's sale.

The title transfers from the trustee to the new owner through the trustee's deed after the sale. When there are no bidders at the trustee sale, the property reverts to the lender through a trustee's deed. Once the property is sold, the borrower has no right of redemption.

Furthermore, a trustee has the responsibility of paying the proceeds from the sale to the borrower and lender after the sale is finalized. The trustee will pay the lender the amount left over on the debt and pay the borrower anything that surpasses that amount, thereby allowing the lender to purchase the property.

Pros and Cons of Investing in Trust Deeds

Investors who are searching for juicy yields sometimes turn to the real estate sector—in particular, trust deeds.

In trust deed investing, the investor lends money to a developer working on a real estate project. The investor's name goes on the deed of trust as the lender. The investor collects interest on the loan; when the project is finished, the principal is returned to the investor in full. A trust deed broker usually facilitates the deal.

High-yielding income stream

Portfolio diversification

Illiquidity

No capital appreciation

What sort of developer enters this arrangement? Banks are often reluctant to lend to certain types of developments, such as mid-size commercial projects—too small for the big lenders, too big for the small ones—or developers with poor track records or too many loans. Cautious lenders may also move too slowly for developers up against a tight deadline for commencing or completing a project.

Developers like these are often in a bit of a crunch. For these reasons, trust deed investors may often expect high interest rates on their money. They can reap the benefits of diversifying into a different asset class without having to be experts in real estate construction or management. This is a form of passive investment .

Trust deed investing has certain risks and disadvantages. Unlike stocks, real estate investments are not liquid , meaning investors cannot retrieve their money on demand. Also, investors can expect only the interest the loan generates; any additional capital appreciation is unlikely.

Invested parties may exploit any legal discrepancies in the trust deed, causing costly legal entanglements that may endanger the investment. The typical investor with little experience may have difficulty, as it takes specific expertise to find credible and trustworthy developers, projects, and brokers.

Real-World Example of a Trust Deed

A short-form deed of trust document used in Austin County, Texas , covers the requirements for most lenders. The form begins with a definition of terms and spaces for the borrower, lender, and trustee to fill in their names. The amount being borrowed and the address of the property are also required.

After this section, the document goes on to specify the transfer of rights in the property and uniform covenants including:

• Details about payment of principal and interest
• Escrow funds
• Property insurance and structure maintenance
• Structure occupancy—stipulating the borrower must take up residency within 60 days

The form also includes nonuniform covenants, which specify default or breach of any of the agreement terms. And it specifies that the loan the document deals with is not a home equity loan —that is, something the borrower will receive cash from—but one for purchasing the property.

The deed of trust ends with a space for the borrower's signature, which must be done in the presence of a notary and two witnesses, who also sign.

What Is Assignment in a Deed of Trust?

In real estate law, " assignment " is simply the transfer of a deed of trust from one party to another. This usually happens when the beneficiary of a trust deed sells their loan to another lender.

What Is Reconveyance in a Deed of Trust?

In real estate law, reconveyance means the transfer of a property from a lender or trustee to a borrower. This usually happens at the end of a mortgage or other loan, when the borrower has satisfied the terms of their debt.

Who Can Be a Trustee in a Deed of Trust?

Some states have laws limiting who can act as a trustee in a deed of trust. In these states, the trustee must be a bank, credit union, thrift, title insurance company, attorney, or other company specifically authorized to hold a trust. In other states, anyone can act as a trustee.

Trust deeds are an alternative to mortgages in certain states. Instead of an agreement directly between a lender and a borrower, a trust deed places the title of a property in the hands of a third party , or trustee. Only after the borrower has satisfied the terms of their debt to the lender will the property be fully transferred to the borrower.

Rocket Lawyer. " Which States Allow Deeds of Trust? "

Legal Information Institute. " Non-Judicial Foreclosure ."

Legal Zoom. " Naming a Trustee in Your Deed of Trust ."

• Terms of Service
• Editorial Policy
• Privacy Policy

Deed of Assignment: Everything You Need to Know

A deed of assignment refers to a legal document that records the transfer of ownership of a real estate property from one party to another. 3 min read updated on January 01, 2024

Updated October 8,2020:

A deed of assignment refers to a legal document that records the transfer of ownership of a real estate property from one party to another. It states that a specific piece of property will belong to the assignee and no longer belong to the assignor starting from a specified date. In order to be valid, a deed of assignment must contain certain types of information and meet a number of requirements.

What Is an Assignment?

An assignment is similar to an outright transfer, but it is slightly different. It takes place when one of two parties who have entered into a contract decides to transfer all of his or her rights and obligations to a third party and completely remove himself or herself from the contract.

Also called the assignee, the third party effectively replaces the former contracting party and consequently assumes all of his or her rights and obligations. Unless it is stated in the original contract, both parties to the initial contract are typically required to express approval of an assignment before it can occur. When you sell a piece of property, you are making an assignment of it to the buyer through the paperwork you sign at closing.

What Is a Deed of Assignment?

A deed of assignment refers to a legal document that facilitates the legal transfer of ownership of real estate property. It is an important document that must be securely stored at all times, especially in the case of real estate.

In general, this document can be described as a document that is drafted and signed to promise or guarantee the transfer of ownership of a real estate property on a specified date. In other words, it serves as the evidence of the transfer of ownership of the property, with the stipulation that there is a certain timeframe in which actual ownership will begin.

The deed of assignment is the main document between the seller and buyer that proves ownership in favor of the seller. The party who is transferring his or her rights to the property is known as the “assignor,” while the party who is receiving the rights is called the “assignee.”

A deed of assignment is required in many different situations, the most common of which is the transfer of ownership of a property. For example, a developer of a new house has to sign a deed of assignment with a buyer, stating that the house will belong to him or her on a certain date. Nevertheless, the buyer may want to sell the house to someone else in the future, which will also require the signing of a deed of assignment.

This document is necessary because it serves as a temporary title deed in the event that the actual title deed for the house has not been issued. For every piece of property that will be sold before the issuance of a title deed, a deed of assignment will be required.

Requirements for a Deed of Assignment

In order to be legally enforceable, an absolute sale deed must provide a clear description of the property being transferred, such as its address or other information that distinguishes it from other properties. In addition, it must clearly identify the buyer and seller and state the date when the transfer will become legally effective, the purchase price, and other relevant information.

In today's real estate transactions, contracting parties usually use an ancillary real estate sale contract in an attempt to cram all the required information into a deed. Nonetheless, the information found in the contract must be referenced by the deed.

Information to Include in a Deed of Assignment

• Names of parties to the agreement
• Addresses of the parties and how they are binding on the parties' successors, friends, and other people who represent them in any capacity
• History of the property being transferred, from the time it was first acquired to the time it is about to be sold
• Agreed price of the property
• Size and description of the property
• Promises or covenants the parties will undertake to execute the deed
• Signatures of the parties
• Section for the Governors Consent or Commissioner of Oaths to sign and verify the agreement

If you need help understanding, drafting, or signing a deed of assignment, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• Define a Deed
• Contract for Deed California
• Contract for Deed in Texas
• Assignment Law
• Deed Contract Agreement
• Assignment Of Contracts
• Legal Assignment
• Deed vs Agreement
• Assignment Legal Definition
• Contract for a Deed

Partnership

Sole proprietorship, limited partnership, compare businesses, employee rights, osha regulations, labor hours, personal & family, child custody & support, guardianship, incarceration, civil and misdemeanors, legal separation, real estate law, tax, licenses & permits, business licenses, wills & trusts, power of attorney, last will & testament, living trust, living will.

• Share Tweet Email Print

REAL ESTATE LAW

What is a deed of trust with assignment of rents.

By Rebecca K. McDowell, J.D.

February 24, 2020

Reviewed by Michelle Seidel, B.Sc., LL.B., MBA

Learn About Our Review Process

Our Review Process

We write helpful content to answer your questions from our expert network. We perform original research, solicit expert feedback, and review new content to ensure it meets our quality pledge: helpful content – Trusted, Vetted, Expert-Reviewed and Edited. Our content experts ensure our topics are complete and clearly demonstrate a depth of knowledge beyond the rote. We are incredibly worried about the state of general information available on the internet and strongly believe our mission is to give voice to unsung experts leading their respective fields. Our commitment is to provide clear, original, and accurate information in accessible formats. We have reviewed our content for bias and company-wide, we routinely meet with national experts to educate ourselves on better ways to deliver accessible content. For 15 years our company has published content with clear steps to accomplish the how, with high quality sourcing to answer the why, and with original formats to make the internet a helpful place. Read more about our editorial standards .

• What Is a Corporate Assignment of Deed of Trust?

A deed of trust is a written instrument granting a lien on real property. While slightly different from a mortgage, they are functionally nearly the same. Some states use deeds of trust instead of mortgages while others allow both. Either way, a deed of trust used to secure a commercial loan may also include an assignment of rents , which gives the lender the right to collect rental income from the property in the event of default.

What Is a Deed of Trust?

A ​ deed of trust ​ is a document that a borrower may execute in favor of a lender to give the lender a lien on a parcel of real estate. Like a mortgage, a deed of trust secures the loan by allowing the lender to foreclose on the real estate if the loan isn't paid (although in some states that use deeds of trust, a foreclosure isn't necessary).

​ Read More: ​ How to Research a Deed of Trust

Deed of Trust vs. Mortgage

A deed of trust is very similar to a mortgage in that it pledges property to secure a loan. A mortgage, however, is simpler; the property owner executes a mortgage document in favor of the lender, and the lender records the mortgage and has a lien , but the property owner still holds title to the property.

A deed of trust, on the other hand, grants an actual ownership interest in the property to a trustee, who holds the property in trust for the lender until the obligation is paid.

What Is an Assignment of Rents?

An ​ assignment of rents ​ is extra security granted to a lender that provides a commercial loan. Commercial loans are loans that are not made for family or household use but for business purposes.

When a borrower grants a mortgage or deed of trust on real estate and the real estate has tenants who pay rent, the lender can demand an assignment of rents in addition to the mortgage or deed of trust.

The assignment of rents means that if the borrower defaults on the loan, the lender can step in and collect the rents directly from the tenants.

Deed of Trust With Assignment of Rents

A deed of trust may contain an assignment of rents clause for that same property. In addition to a clause in the deed of trust, the lender may also require the borrower to execute a separate document called an "Assignment of Rents" that is recorded with the register of deeds.

Whether the assignment is written in the deed of trust only or is also contained in a separate document, it is binding on the borrower as long as its language is clear and sufficient to create an assignment under state law.

Exercising an Assignment of Rents

When a lender decides to collect the rents on the borrower's property, the lender is said to be exercising the assignment of rents. The lender cannot exercise the assignment unless the borrower has defaulted on the loan. Once that happens, the lender can send a written demand to the tenant or tenants, requiring that the rents be paid directly to the lender.

Absolute Assignments of Rents

An assignment of rents most likely will contain language that the assignment is an ​ absolute assignment ​. In most states, an absolute assignment gives the lender an immediate interest in the rents. This means that the lender actually owns the rents and is simply allowing the borrower to collect them on license until an event of default. Once a default occurs, the lender can intercept the rents without taking any court action; a letter to the tenants is all that's needed.

Every state's laws are different; the law of the state where the property is located will dictate how a lender can exercise an assignment of rents.

​ Read More: ​ What Is the Difference Between a Deed and a Deed of Trust?

• Companies Incorporated: Mortgage States and Deed of Trust States
• American Bar Association: Commercial Real Estate FAQs
• Schulte Roth & Zabel: Sixth Circuit Upholds Assignment of Rents to Secured Lender
• Findlaw: California Civil Code - CIV § 2938
• Legal Beagle: What Is the Difference Between a Deed and a Deed of Trust?
• Legal Beagle: How to Research a Deed of Trust
• Legal Beagle: Documents Needed to Refinance a Mortgage
• Legal Beagle: How to File a Property Lien

Rebecca K. McDowell is a creditors' rights attorney with a special focus on bankruptcy and insolvency. She has a B.A. in English from Albion College and a J.D. from Wayne State University Law School. She has written legal articles for Nolo and the Bankruptcy Site.

Related Articles

• Who Can Act As Trustee in a Texas Deed of Trust?
• The Definition of a Leasehold Deed of Trust
• How to Waive Right of Redemption After Foreclosure

The Atlanta Title Company Residential and Commercial Real Estate Lawyers 945 East Paces Ferry Rd, Resurgens Plaza, Atlanta, GA 30326

• Contact Us: (916) 442-4204 Tap Here To Call Us

A Deed of Trust can be Assigned Apart from the Note, and that often occurs just before a foreclosure. But What Does That Mean? Not Much, the Deed of Trust is Inseparable from the Note

Notes and Deeds of Trust are often assigned to different parties. The question posed is what happens if the Deed of Trust alone is assigned ? A typical assignment of the Deed of Trust alone will purport to assign “all beneficial interest under that certain Deed of Trust dated xyz..” But the long-established law in California is clear: the beneficial interest under a Deed of Trust is held by the party who holds the Note (or is entitled to enforce it), without regard to the assignment of the Deed of Trust .

The subject was again addressed by the California Courts in Domarad v. Fisher & Burke, Inc. (1969) 270 Cal. App. 2d 543 ). The Court noted that a deed of trust is a mere incident of the debt it secures and that an assignment of the debt carries with it the security. “The deed of trust is inseparable from the debt and always abides with the debt, and it has no market or ascertainable value, apart from the obligation it secures and that a deed of trust has no assignable quality independent of the debt, it may not be assigned or transferred apart from the debt, and an attempt to assign the deed of trust without a transfer of the debt is without effect. (emph. added)”

In Stockwell v. Barnum ((1908) 7 Cal. App. 413) the Court stated that this Code “is wholly foreign to deeds of trust, which, instead of creating a lien only, as in the case of a mortgage, passes the legal title to the trustee, thus enabling him in executing the trust to transfer to the purchaser a marketable record title. It is immaterial who holds the note. The transferee of a negotiable promissory note, payment of which is secured by a deed of trust whereby the title to the property and power of sale in case of default is vested in a third party as trustee, is not an incumbrancer to whom power of sale is given…” Stockwell @ 417.

And more recently “it has been established since 1908 that this statutory requirement that an assignment of the beneficial interest in a debt secured by real property must be recorded in order for the assignee to exercise the power of sale applies only to a mortgage and not to a deed of trust.” ( Calvo v. HSBC Bank USA, N.A. (2011) 199 Cal.App.4th 118 , 122.)

Why is that? There is a technical difference between the two security instruments. The mortgage only involves two parties –the borrower who grants the power of sale to the lender, and the lender who then holds the beneficial interest in the mortgage plus the power of sale. A deed of trust, on the other hand, involves three parties: the borrower, the lender, and the trustee who is granted conditional title to the encumbered property as well as the power of sale.

Thus, the deed of trust may thus be assigned one or multiple times over the life of the loan it secures. But if the borrower defaults on the loan, only the current beneficiary may direct the trustee to undertake the nonjudicial foreclosure process. “[O]nly the ‘true owner’ or ‘beneficial holder’ of a Deed of Trust can bring to completion a nonjudicial foreclosure under California law.” Yvanova v. New Century Mortgage (62 Cal. 4th 919) (2016)

An Alternative The Commercial Code also provides a mechanism for recording an assignment of the security if there has been an off-record transfer of the note but no recorded assignment of the deed of trust or mortgage. The buyer of the note can record a copy of the transfer agreement whereby the note was acquired, together with a sworn statement that a default has occurred, and in that event may proceed with a nonjudicial foreclosure. ( Cal. Com. Code, § 9607, subd. (b))

Photos: flickr.com/photos/discoveroregon/49807993897/sizes/l/ flickr.com/photos/mlp52/5208316490/sizes/l/ flickr.com/photos/hazphotos/2615058018/sizes/c/

Understanding Deed of Assignment: Definition, Uses, and Legal Implications Explained

A deed of assignment is a legal document that transfers the ownership of a tangible or intangible asset from one party (assignor) to another (assignee). It is used to formalize the transfer of rights, interests, or benefits associated with the asset specified in the deed. This document is commonly used in various legal and financial transactions to ensure clarity and enforceability of the transfer.

Table of Contents

Key characteristics of deed of assignment.

• Legal Form : It is a formal written document recognized under legal jurisdictions.
• Transfer of Rights : Involves transferring ownership or interests in a specific asset.
• Specificity : Clearly defines the asset being transferred and the terms of transfer.
• Enforceability : Once executed, it becomes legally binding on both parties.

How Deed of Assignment Works

Examples and usage, 1. transfer of debt example.

• Definition : A debtor assigns their debt obligation to a new creditor.
• Process : A deed of assignment is used to transfer the rights to receive payment from the debtor to the new creditor.

2. Intellectual Property Transfer

• Definition : An author assigns their copyright in a book to a publishing company.
• Procedure : A deed of assignment outlines the transfer of intellectual property rights from the author to the publisher.

Advantages of Deed of Assignment

• Legal Clarity : Provides a clear record of the transfer of rights or interests.
• Enforceability : Ensures that the assignee can legally enforce their rights against the assignor.
• Asset Protection : Helps protect the rights of the assignee against claims by third parties.

Challenges of Deed of Assignment

Considerations.

• Legal Requirements : Must adhere to specific legal formalities to be enforceable.
• Risk of Breach : Potential for disputes over the validity or terms of the assignment.

Importance of Deed of Assignment

Practical applications, legal transfers.

• Debt Assignments : Transferring debt obligations from one creditor to another.
• Property Transfers : Assigning ownership rights in real estate or intellectual property.

Real-world Implications

Legal and financial security.

• Contractual Agreements : Facilitates smooth transfers of rights and responsibilities.
• Risk Management : Helps mitigate risks associated with ownership disputes or claims.

Example Scenario

Application in debt assignment, scenario: debt transfer deed of assignment.

• Context : A company assigns its accounts receivable to a factoring company.
• Procedure : Signing a deed of assignment outlining the transfer of rights to receive payment from debtors to the factoring company.

A deed of assignment is a crucial legal instrument used to transfer ownership or rights from one party to another. Whether for debts, intellectual property, or other assets, it ensures clarity and enforceability in legal transactions. By documenting the specifics of the transfer and adhering to legal requirements, parties can safeguard their interests and ensure that the transfer is legally binding. Understanding the purpose and implications of a deed of assignment is essential for navigating legal transfers of rights and assets effectively. It provides a structured approach to asset transfers, protecting the rights of both assignors and assignees under legal frameworks. Overall, deeds of assignment play a significant role in facilitating smooth and legally secure transfers of various types of assets and rights between parties.

Related Posts

Written-down value (wdv) explained for beginners.

If you’re new to finance and accounting, terms like “Written-Down Value” or WDV might sound…

Activity Sampling (Work Sampling): Unveiling Insights into Work Efficiency

Activity Sampling, also known as Work Sampling, is a method used in various industries to…

Automated page speed optimizations for fast site performance

Deed of Trust, Assignment of Leases and Rents, Security Agreement, and Fixture Filing (Pro-Lender Short Form) (With Loan Agreement) (TX) | Practical Law

Deed of Trust, Assignment of Leases and Rents, Security Agreement, and Fixture Filing (Pro-Lender Short Form) (With Loan Agreement) (TX)

Practical law standard document w-007-1336  (approx. 71 pages).

What's in a name? Priority issues under postponement, subordination and intercreditor agreements

Legal Resources & Innovation Lawyer

Two priority issues arise between creditors of a common debtor:

• Payments - What are the priorities between the creditors to payments made to them by the debtor?
• Security Interests - What are the priorities between the creditors in relation to security interests granted to them by the debtor?

As to payments, creditors are free to agree as between themselves as to who is paid when [1] . As to security interests, the Personal Property Security Act [2] (the " Act ") has complex priorities rules that determine the priority between competing security interests to the same collateral. However, creditors can enter into agreements to confirm or change the priority that their security interests would have under the Act [3] . Those agreements can, and usually do, also deal with priority of payments [4] . The agreements go by a number of different names, such as subordination agreements, priority agreements or intercreditor agreements. While there are no firmly established rules as to what each type of agreement does, there are typical terms in each agreement that differ from the terms in other agreements. This article looks at the various kinds of agreements dealing with priority issues, the typical terms they have and the differences between them.

Postponement agreement

A postponement agreement deals only with the issue of payments to be made by a debtor to its creditor, and not with any security interests granted by it. Under a postponement agreement the postponing creditor agrees that it will postpone receipt of payments from the debtor on specified terms, such as until the senior creditor is paid in full. While a postponement does give one creditor priority to payments from the common debtor, it does not usually subordinate any security interest that a creditor might have [5] .

Subordination agreement

A subordination agreement (sometimes called a priority agreement or a priorities agreement) is given by one creditor in favour of another, and typically deals with subordination by the granting creditor of both security interests governed by the Act and of the right to payment. Under a subordination agreement, the subordinated secured creditor:

• subordinates to the senior secured creditor the security interests granted to it by the debtor; and
• agrees to postpone payments to it by the debtor until the senior secured creditor is paid in full [6] .

An agreement on those terms constitutes a full or deep subordination by one secured creditor to another [7] . A subordination agreement can limit the extent of subordination, for example to a limited dollar amount, for a certain period of time or while other conditions exist, and can contain some of the more complex provisions of an intercreditor agreement, as discussed below. But the typical subordination agreement is a one-way subordination by a subordinated creditor in favour of a senior creditor.

Intercreditor agreement

An intercreditor agreement usually provides for mutual subordination of security interests and division of payment between secured creditors. It can also deal with matters not strictly related to priority, such as enforcement of rights and remedies and access to collateral.

Rather than a simple subordination by a subordinated creditor in favour of a senior creditor, an intercreditor agreement is usually a more complex agreement between two or more secured creditors, setting out the details of the relationship between them in relation to their common debtor. An intercreditor agreement could include provisions dealing with:

• The relative priority of the security interests of each secured creditor to the other. This could take the form of subordination by each secured creditor of its security interest to certain classes of collateral. For example, one secured creditor might take priority over the debtor's operating assets, such as inventory, cash and receivables, and the other could take priority over the debtor's fixed assets, or over all other personal property.
• Payments by the debtor to each secured creditor. These provisions could include payment blockage notices (to be given by a senior secured creditor upon a default or other occurrence) and payment blockage periods (relating to payments to a junior creditor). Or the parties could agree to pari passu [8] sharing of payments between them, calculated on the amount of the indebtedness owing by the debtor to any one of them to the amount of the debtor's indebtedness to all parties to the agreement.
• The rights and remedies of each secured creditor on default. For example, a secured creditor could be required to give notice to the other secured creditor before enforcing its security. The parties could also agree to an enforcement standby (sometimes called a standstill), setting out when a junior creditor may and may not enforce its security interest.

What about no interest letters?

A no interest letter (sometimes called an estoppel letter) or similar agreement is not strictly an agreement affecting priority to payments or to collateral, although it does affect rights to collateral [9] . Under a no interest letter one secured creditor acknowledges to another that it does not have a security interest in specified collateral, or that its security interest is limited only to specified collateral. This differs from a subordination agreement in that the creditor giving the letter is disclaiming or narrowing any interest in the collateral, rather than maintaining a subordinated security interest in it. For the secured creditor receiving the no interest letter, however, the effect is the same as a subordination agreement. The benefitting secured creditor can rely on the no interest letter to assert its priority to the collateral over the secured creditor granting the letter.

The terms of agreements dealing with priorities and the issues they address are limited only by the requirements of the parties and the imaginations of creditors and their counsel. While this article has dealt with each type of agreement as separate and distinct, some or all of the elements in each type of agreement may be combined in a single agreement. That is sometimes done in an intercreditor agreement, or it may be in an agreement called a "Postponement, Subordination and Standstill Agreement", or a similar name that describes the effect of the provisions in the agreement.

As to "what's in a name", it turns out quite a lot. Although there are no fixed rules as to what terms any given agreement dealing with priorities contains, the name of the agreement can give a pretty good indication of the nature of the agreement and the provisions in it. Just don't forget to read the fine print.

[1] Such as in a postponement agreement, as discussed below.

[2] In this article a reference to the PPSA means the Personal Property Security Act in each of British Columbia, Alberta and Ontario.

[3] See s.40(1) of the British Columbia PPSA, s.40 of the Alberta PPSA and s.38 of the Ontario PPSA.

[4] The agreements can also deal with other issues, such as enforcement of rights under security on default, but this article focuses on the issue of priority of payments and security interests.

[5] The postponing creditor may not hold any security interest which requires subordination, or it may have agreed to postponement of payment but not to subordination of its security interest.

[6] There could be some other agreement on payments to the subordinated creditor, such as allowing certain defined "Permitted Payments" to it as long as the debtor is not in default to the senior creditor.

[7] For example, a shareholder that has made loans to and taken security from a company will usually fully subordinate its security interests and right to payment to an institutional lender to the company.

[8] Pari passu means "at the same rate" or (in general) "equally". Other terminology sometimes used to describe the equitable division of payments or proceeds among secured creditors is "proportionately" or " pro rata ". The meaning of these terms can vary depending on whether they are defined in the agreement and how they are used in context.

[9] No interest/estoppel letters are most common in Ontario, where the "check the box" system used for financing statements can make it difficult to determine the scope of a security interest and the collateral charged by it. For example, checking the box "equipment" would include all equipment, not just equipment supplied or financed by the secured party, even though the security interest may only extend to equipment that is supplied or financed.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Deed of Assignment (for Intellectual Property)

In the realm of intellectual property, a Deed of Assignment is a formal legal document used to transfer all rights, title, and interest in intellectual property from the assignor (original owner) to the assignee (new owner). This is crucial for the correct transfer of patents, copyrights, trademarks, and other IP rights. The deed typically requires specific legal formalities, sometimes notarization, to ensure it is legally enforceable.

To be legally effective a deed of assignment must contain:

• Title of the Document : It should clearly be labeled as a "Deed of Assignment" to identify the nature of the document.
• Date : The date on which the deed is executed should be clearly mentioned.
• Parties Involved : Full names and addresses of both the assignor (the party transferring the rights) and the assignee (the party receiving the rights). This identifies the parties to the agreement.
• Recitals : This section provides the background of the transaction. It typically includes details about the ownership of the assignor and the intention behind the assignment.
• Definition and Interpretation : Any terms used within the deed that have specific meanings should be clearly defined in this section.
• Description of the Property or Rights : A detailed description of the property or rights being assigned. For intellectual property, this would include details like patent numbers, trademark registrations , or descriptions of the copyrighted material.
• Terms of Assignment : This should include the extent of the rights being transferred, any conditions or limitations on the assignment, and any obligations the assignor or assignee must fulfill as part of the agreement.
• Warranties and Representations : The assignor typically makes certain warranties regarding their ownership of the property and the absence of encumbrances or third-party claims against it.
• Governing Law : The deed should specify which jurisdiction's laws govern the interpretation and enforcement of the agreement.
• Execution and Witnesses : The deed must be signed by both parties, and depending on jurisdictional requirements, it may also need to be witnessed and possibly notarized.
• Schedules or Annexures : If there are detailed lists or descriptions (like a list of patent numbers or property descriptions), these are often attached as schedules to the main body of the deed.

Letter of Assignment (for Trademarks and Patents)

This is a less formal document compared to the Deed of Assignment and is often used to record the assignment of rights or licensing of intellectual property on a temporary or limited basis. While it can outline the terms of the assignment, it may not be sufficient for the full transfer of legal title of IP rights. It's more commonly used in situations like assigning the rights to use a copyrighted work or a trademark license.

For example, company X allows company Y to use their trademark for specific products in a specific country for a specific period.  

At the same time, company X can use a Letter of Assignment to transfer a trademark to someone. In this case, it will be similar to the Deed of Assignment. 

Intellectual Property Sales Agreement

An IP Sales Agreement is a detailed contract that stipulates the terms and conditions of the sale of intellectual property. It covers aspects such as the specific rights being sold, payment terms, warranties regarding the ownership and validity of the IP, and any limitations or conditions on the use of the IP. This document is essential in transactions involving the sale of IP assets.

However, clients usually prefer to keep this document confidential and prepare special deeds of assignment or letter of assignment for different countries.

IP Transfer Declaration

In the context of intellectual property, a Declaration is often used to assert ownership or the originality of an IP asset. For example, inventors may use declarations in patent applications to declare their invention is original, or authors may use it to assert copyright ownership. It's a formal statement, sometimes required by IP offices or courts.

When assigning a trademark, the Declaration can be a valid document to function as a proof of the transfer. For example, a director of company X declares that the company had sold its Intellectual Property to company Y. 

Merger Document

When companies or entities with significant IP assets merge, an IP Merger Document is used. This document outlines how the intellectual property owned by the merging entities will be combined or managed. It includes details about the transfer, integration, or handling of patents, copyrights, trademarks, and any other intellectual property affected by the merger.

In all these cases, the precise drafting of documents is critical to ensure that IP rights are adequately protected and transferred. Legal advice is often necessary to navigate the complexities of intellectual property laws.

This site uses cookies to store information on your computer.

Some cookies on this site are essential, and the site won't work as expected without them. These cookies are set when you submit a form, login or interact with the site by doing something that goes beyond clicking on simple links.

We also use some non-essential cookies to anonymously track visitors or enhance your experience of the site. If you're not happy with this, we won't set these cookies but some nice features of the site may be unavailable.

By using our site you accept the terms of our Privacy Policy .

• Election 2024
• Entertainment
• Newsletters
• Photography
• AP Buyline Personal Finance
• AP Buyline Shopping
• Press Releases
• Israel-Hamas War
• Russia-Ukraine War
• Global elections
• Asia Pacific
• Latin America
• Middle East
• Delegate Tracker
• AP & Elections
• 2024 Paris Olympic Games
• Auto Racing
• Movie reviews
• Book reviews
• Financial Markets
• Business Highlights
• Financial wellness
• Artificial Intelligence
• Social Media

Takeaways: Harris’ approach to migration was more nuanced than critics or allies portray it

FILE - Vice President Kamala Harris talks to Gloria Chavez, Chief Patrol Agent of the El Paso Sector, as she tours the U.S. Customs and Border Protection Central Processing Center, June 25, 2021, in El Paso, Texas. (AP Photo/Jacquelyn Martin, File)

• Copy Link copied

WASHINGTON (AP) — As thousands of immigrants approached the U.S. border in early 2021, President Joe Biden tapped his second-in-command to address the influx. The decision has exposed Vice President Kamala Harris to one of her biggest political liabilities.

Harris’ assignment was to tackle the “root causes” of migration from three Central American nations — El Salvador, Guatemala and Honduras — that were responsible for a significant share of border rossers. The vice president took a long-term approach to an immediate problem, helping convince multinational corporations and Latin American businesses to invest in the region. That, she argued, would create jobs and give locals more reasons to stay at home rather than take the arduous trek north.

Migration from those three Central American countries did gradually drop, though experts say it’s unlikely that Harris’ plan was a major factor. The decrease was swamped by a surge in migration from elsewhere in Latin America, and Republicans now blame Harris for all the myriad problems that plagued the U.S. southern border during the administration’s term.

Here are some things to know about Harris’ record on migration as vice president.

She was never the “border czar”

The GOP and even some media outlets called Harris the “border czar” after she got her assignment from Biden, but that was never her actual job. She had no special responsibilities at the border. Those involved in the hottest issue there — negotiations over whether to continue former President Donald Trump’s pandemic immigration policy known as Title 42 — say the vice president was not involved in that debate.

Biden tasked Harris with working with the Central American nations “to accept returnees and enhance migration enforcement at their borders.” Some critics contend she dodged that assignment and mainly focused on long-term investments.

Harris took two trips to Mexico and Central America in 2021 and 2022, including a visit to Guatemala in June 2021 where she told would-be migrants “ don’t come ” to the U.S. During that trip she also defended the fact she had not been to the U.S.-Mexico border during an interview with NBC’s Lester Holt by saying she hadn’t “been to Europe. And I mean, I don’t … understand the point that you’re making.”

That line became part of Trump’s first ad against Harris, which blames her for hundreds of thousands of deaths from fentanyl and crimes committed by people who entered the country illegally.

Harris has defended her record. Her campaign began running a television ad on Friday that said Harris would “hire thousands more border agents and crack down on fentanyl and human trafficking” as president. Democrats have also blasted Trump for helping tank a bipartisan immigration bill earlier this year that would have increased funding for border security, including new Customs and Border Protection personnel.

Harris focused on business investments

The vice president’s most prominent achievement was tapping into a network of business and nonprofit executives to invest in El Salvador, Guatemala and Honduras, which are known as the Northern Triangle nations.

The work linked multinational companies — like Visa, Nestle and Meta — with smaller nonprofits and Latin American businesses, all of which pledged to increase their investments or bolster their work with at-risk communities.

What to know about the 2024 Election

• Today’s news: Follow live updates from the campaign trail from the AP.
• Ground Game: Sign up for AP’s weekly politics newsletter to get it in your inbox every Monday.
• AP’s Role: The Associated Press is the most trusted source of information on election night, with a history of accuracy dating to 1848. Learn more.

The Associated Press contacted all of the nearly two dozen companies the White House touted as participants in Harris’ effort. Some, like AgroAmerica, a sustainable food corporation that pledged to invest more than $100 million in six new projects, reported their work had begun and they were on track to meet their investment goals. Others, including Columbia Sportswear Company, said they would likely surpass their goals.

Most companies, however, either declined to comment or did not respond when asked about the work they have done to meet their pledges.

The vice president’s office has said that Harris’ outreach has generated more than $5.2 billion in investment promises. In an illustration of how long it takes the promises to translate into concrete spending, the State Department reported that companies have plowed nearly $1.3 billion in the region as of June 2024, the bulk of it in Guatemala and Honduras.

Katie Tobin, who worked as the top migration adviser at the National Security Council for three years, credited Harris’ focus with spurring investment in reducing these numbers, arguing that Harris “was able to leverage her credibility” and the power of the White House to convince companies to invest in “a risky investment environment.”

“That was very much Kamala Harris,” she added. “I have never seen something like that done before in this space, and it made a real impact.”

Republican Sen. Rick Scott, a critic of the administration on Latin American issues, questioned whether the White House should really be credited for business investments. He argued they would have happened without Harris.

The companies are “not doing it because someone asked them to,” said Scott, who co-founded a major medical company, “they’re doing it because it makes economic sense.”

Did it work?

While the Harris campaign and White House have pointed to statistics that show migration from Northern Triangle countries has dropped substantially since early 2021, there is debate over what is behind the decrease.

Sen. Chris Murphy, a Connecticut Democrat, said Harris and the administration deserve credit for the reduction because their efforts “worked,” adding that Harris’ contribution has been overlooked.

Independent analysts, however, said they were skeptical that Harris’ approach played much of a role. They said the decrease was likely driven by other regional factors, including the ascension of El Salvador’s new president and his aggressive drive to combat violent crime. His government reported a 70% drop in homicides in 2023.

Julia Gelatt, associate director of the Migration Policy Institute in Washington, said investment can take years to alter migration patterns — if it ever does.

“Even a whole lot of economic development doesn’t curb immigration in the way countries hope it will,” Gelatt said.