Mortgages, Security Instruments, and Promissory Notes in Alabama

The short definition of a mortgage is that it’s a loan used to purchase real property. In Alabama, the mortgage is comprised of two parts: the security instrument and the promissory note. A security instrument is a specific type of document that provides security for the lender and contains terms (agreements) that apply until the buyer (borrower)repays the lender according to terms defined in an attached promissory note.

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Transferring Real Property from a Living Trust in Alabama

In a trust arrangement, a settlor transfers property to another person (the trustee) for the benefit of a third (the beneficiary).

Because the trust is not a person, title to any real property transferred to the trust should be vested in the name of a trustee on the trust’s behalf. In most living trusts, the settlor serves as trustee.

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Correcting a Recorded Real Estate Deed in Alabama with a Correction Deed

In order to correct a prior deed on record, use a correction deed, which must be notarized and recorded at the same county agency as the earlier deed. The Alabama correction deed makes specific reference, by execution and recording date, as well as instrument ID or book/page number, to the earlier deed and rerecords it in its entirety. It states the type of error made and adds the corrected information in the respective section of the instrument. All parties who signed the prior deed must sign the correction deed in the presence of a notary.

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