Judge approved Motion For Sale Order!

[gemsnroses00]

It was approved! In the terms it reads, "The Trustee shall convey title by Trustee's Mineral Deed upon receipt of the sales proceeds in full." What exactly is this? They want me to sign a promissory note and deed of trust, is that something they will send me? Should I ask for anything else in writing to prove I will be the rightful owner after it's paid in full? Thanks guys!

[justbroke]

It just means that the Court ordered the property to be sold "free and clear of liens" and that the Trustee's Deed is a warranty deed (clean title). Once the Trustee is paid for the Deed, the Trustee "must" convey (transfer) the title to the purchaser (you).

Yes, you will need to sign the Deed of Trust because it gives you clean title (free and clear of liens). The Deed is your proof of ownership. The promissory note is probably used because you are making payments. The promissory note should contain details on the amount owed, the term, the payments, and maybe something about conveyance (transfer) of the Title after the note is paid in full.

The Trustee should be sending you this paperwork.

[gemsnroses00]

Cool thanks again!

[despritfreya]

Wait. . .

A Deed of Trust is a mortgage and creates a lien against the property you are purchasing in favor of the beneficiary, which I assume is your bankruptcy trustee. You are purchasing the asset but are paying for it in installments - right? That is why you are signing a promissory note secured by a Deed of Trust. Does that make sense to you?

Des.

[justbroke]

Yes, you explained that better Des! I was trying to say that it's a mortgage and the Trustee will hold the Deed as a Deed of Trust.

[gemsnroses00]

Yes I think I understand it. It seems pretty simple, does this get noted in the county that the royalties are recorded in, or this just a legal paper trial to protect all parties involved?

[LadyInTheRed]

I was trying to say that it's a mortgage and the Trustee will hold the Deed as a Deed of Trust.

That still requires some clarification.

A deed and a deed of trust are two separate documents. The deed (in a sale it is usually a Grant Deed or Warranty Deed*), is executed by the seller of the property and recorded. It transfers legal title to the property to the buyer. If the buyer took a loan to purchase the property, he or she executes a promissory note that the lender keeps (or loses as seems to often be the case). Depending on what state the property is in, the buyer also executes either a mortgage or a deed of trust to give the lender a lien against the property. My understanding is that Florida uses a mortgage. I don't know if a mortgage is recorded because I live in California where we have deeds of trust. A Deed of Trust is recorded with the county recorder (or county clerk, or a division of the county court. This all varies by state and sometimes by counties within a state).

So, the trustee will execute a Trustee's Mineral deed to transfer the mineral rights to Gemsnroses00 and Gemsnroses00 will sign a Deed of Trust to establish a lien against the mineral rights. Both will be recoreded and Gemnroses00 will have all rights and responsiblities connected to ownership, except that he/she can't sell the rights without paying off the deed of trust, unless the buyer and Trustee agree otherwise. When Gemnroses00 finishes makign payments on the mineral rights, a satisfaction or release of the deed of trust will be recorded.

[* There are other possible names for a deed: Trustee's Deed and Executor's deed are too possiblities. A quitclaim deed also transfers property, but is not usually used for a sale unless the buyer accepts that there may be a cloud on title.]

[justbroke]

In-Deed this sounds complex.

[despritfreya]

In-Deed this sounds complex.

ROFLMAO - thanks for the humor which put a big on my face.

Des.

[LadyInTheRed]

ROFLMAO - thanks for the humor which put a big on my face.

Des.

Put a smile on mine too! I'll have to look for an opportunity to use that one at work sometime.

[gemsnroses00]