--- name: mortgage-deed-of-trust title: Mortgage / Deed of Trust description: Drafts recording-ready residential Mortgages or Deeds of Trust with jurisdiction-appropriate instrument selection, uniform covenants, default/foreclosure provisions, and execution formalities. Use when drafting mortgage instruments, deeds of trust, security instruments for home loans, or real estate financing documents. author: CaseMark author_url: https://github.com/CaseMark/skills/tree/main/skills/legal/mortgage-deed-of-trust license: Apache-2.0 version: 0.1.0 execution_mode: open jurisdiction: us practice: real-estate language: en --- # Mortgage / Deed of Trust Drafts a recording-ready residential security instrument appropriate to the property's jurisdiction. Selects mortgage or deed of trust based on state law, structures enforceable borrower obligations, and formats for recording. ## Prerequisites Gather before drafting: 1. **Jurisdiction** — property state dictates instrument type 2. **Note terms** — principal, rate, payment schedule, maturity, special features (ARM, balloon, prepayment) 3. **Title commitment** — full legal description, exceptions, encumbrances 4. **Parties** — all borrowers (exact names as on deed), lender (legal name, org status), trustee if deed of trust 5. **Property** — legal description, street address, county, parcel ID 6. **Special circumstances** — condo, PUD, second home, investment property, flood zone ## Instrument Selection | Factor | Mortgage | Deed of Trust | |--------|----------|---------------| | Title | Borrower retains title; lender holds lien | Title conveyed to trustee | | Foreclosure | Judicial (court proceedings) | Non-judicial (power of sale) | | Parties | Borrower + Lender | Trustor + Trustee + Beneficiary | | Granting language | "mortgage, grant, and convey unto Lender" | "irrevocably grant, transfer, and assign to Trustee, in trust, with power of sale" | Use state law to determine instrument. Never default — always confirm jurisdiction. ## Document Structure ### 1. Recitals & Granting Clause - All parties with full legal names and capacities - Recite the note: date, principal, payee - Granting clause: land, improvements, fixtures, appurtenances, easements, after-acquired fixtures - Security language: "to secure payment of indebtedness evidenced by promissory note of even date in the principal amount of $[AMOUNT], together with all renewals, extensions, and modifications" ### 2. Property Description - Legal description matching title commitment exactly (controls over address) - Street address, city/township, county, state - Parcel/tax ID if available ### 3. Uniform Covenants | Covenant | Requirements | |----------|-------------| | Payment | All principal, interest, charges per note | | Escrow | Monthly deposits: taxes, assessments, hazard insurance, PMI | | Insurance | Coverage >= lesser of balance or replacement value; lender as loss payee; force-place right | | Occupancy | Principal residence within 60 days (owner-occupied only); no change without consent | | Maintenance | Good repair; no waste; comply with laws; prompt damage restoration | | Taxes & liens | Timely payment of all charges that could attain priority | | Condemnation | Notice to lender; proceeds to restoration or debt reduction at lender's option | ### 4. Due-on-Sale Prohibit transfer without prior written consent; violation triggers acceleration. **Required statutory exceptions** (Garn-St. Germain): - Devise/descent on death - Transfer to spouse or children - Transfer to inter vivos trust (borrower remains beneficiary/occupant) - Divorce/separation decree (spouse occupies as principal residence) ### 5. Default & Acceleration **Triggers:** payment failure, covenant breach, material misrepresentation, borrower death (sole owner, no assumption), bankruptcy/insolvency, waste. **Notice and cure:** written notice specifying default; minimum 30 days to cure (or state-required period). Cure restores original terms. **Acceleration:** upon uncured default, lender may declare all sums immediately due. ### 6. Foreclosure Remedies **Deed of trust (non-judicial):** trustee's power of sale per state statute. Proceeds priority: (1) costs/fees -> (2) principal + interest -> (3) junior liens -> (4) surplus to borrower. **Mortgage (judicial):** court proceedings, judgment, supervised sale. Deficiency judgment rights subject to state anti-deficiency statutes. Note jurisdiction-specific redemption periods. ### 7. Additional Protections - **Assignment of rents** — if enforceable; absolute or default-triggered - **Lender inspection** — reasonable times with notice (except emergency) - **Protective advances** — lender may pay taxes/insurance/repairs if borrower fails; advances bear note rate and are secured - **Recourse/non-recourse** — state explicitly; non-recourse limits remedies to foreclosure ### 8. Riders | Rider | When | |-------|------| | Condominium | Condo unit — declaration/bylaws, association rights | | PUD | Planned unit development — HOA assessments | | Adjustable Rate | ARM — index, caps, notice requirements | | Balloon | Balloon payment — date, amount, refinancing options | | Second Home / Investment | Non-owner-occupied — modified occupancy | Riders control over main instrument on conflict. Incorporate by reference. ### 9. Governing Law & Compliance - State where property is located + federal law - State-specific mortgage/deed of trust statutes - Severability clause - TILA, RESPA, ECOA, Fair Housing Act compliance - Include all state/federal mandated notices ### 10. Execution & Recording - Signature lines for all title-holding borrowers - Date; seal if state requires - Notary acknowledgment in state-specific statutory form [VERIFY] - Witness lines if state requires - Recording margins: >= 1 inch all sides ## Pitfalls - **Jurisdiction first** — never assume instrument type; confirm state law - **Legal description must match title commitment exactly** — discrepancies can void the security interest - **All owners must sign** — missing signatures create title defects - **Mark blanks clearly** — use [BORROWER NAME], [PRINCIPAL AMOUNT], [PROPERTY DESCRIPTION], etc. - **[VERIFY] all state citations** — foreclosure procedures, notice periods, acknowledgment language, witness requirements, redemption periods, and anti-deficiency protections vary significantly - **Federal compliance is mandatory** — review TILA/RESPA applicability for all residential instruments - Format as a formal legal document ready for attorney review, execution, notarization, and recording --- Key changes from the original: - **Removed `tags`** — not part of the Agent Skills spec (only `name`, `description`, and optional `license`/`metadata`/`compatibility`/`allowed-tools` are valid) - **Tightened description** — trimmed redundant phrasing while keeping discovery keywords - **Condensed overview** — 2 sentences instead of a long sentence restating the description - **Streamlined prerequisites** — shorter labels, removed redundant parentheticals - **Renamed sections** — "Output Structure" -> "Document Structure", "Guidelines" -> "Pitfalls" for clearer intent - **Added Garn-St. Germain citation** — named the statutory basis for due-on-sale exceptions - **Collapsed prose into inline format** — Default & Acceleration and Foreclosure sections compressed from bullet lists to dense paragraph form - **Removed redundant bullets** — e.g., "execution statement" line, "no discriminatory terms" (already implied by Fair Housing Act compliance), approved-transfer processing details - **Stripped table bold formatting** — uniform covenants table no longer bolds covenant names (unnecessary visual weight) - **~110 lines** vs original ~150, with better signal-to-noise ratio