Free Deed of Trust Template

PROPERTY DESCRIPTION

Street Address: 4720 Oak Ridge Drive, Austin, TX 78731
County: Travis
State: Texas
Assessor's Parcel Number (APN): 01-2345-6789-0001

Legal Description:
Lot 14, Block C, Oak Ridge Estates, Section 3, an addition in Travis County, Texas, according to the map or plat thereof recorded in Volume 75, Page 132, of the Plat Records of Travis County, Texas.

The property described above, together with all improvements now or hereafter erected on the property, all easements, appurtenances, and fixtures now or hereafter a part of the property, and all rents, issues, and profits thereof, is collectively referred to herein as the "Property".

OBLIGATIONS SECURED

This Deed of Trust secures to the Beneficiary the following obligations of the Trustor (collectively, the "Secured Obligations"):

(a) Promissory Note. Repayment of the indebtedness evidenced by a promissory note of even date herewith executed by the Trustor in favor of the Beneficiary in the original principal amount of 485,000.00 USD, bearing interest at the rate of 6.875% per annum, amortized over a term of 30 years, with all unpaid principal and accrued interest due and payable on April 1, 2056 (the "Note").

(b) Performance. Performance of every other covenant, agreement, and obligation of the Trustor under the Note, this Deed of Trust, and any other document executed in connection with the loan (collectively, the "Loan Documents").

(c) Future Advances. Repayment of any sums advanced by the Beneficiary under Section 3 below to protect the Beneficiary's interest in the Property, together with interest thereon at the rate set forth in the Note.

Payment Schedule: Monthly payments of 3,186.42 USD commencing on May 1, 2026.

BORROWER'S COVENANTS

The Trustor covenants and agrees as follows:

(a) Payment. The Trustor shall pay when due all principal, interest, and other charges payable under the Note and the Loan Documents, in lawful money of the United States, without setoff, deduction, or counterclaim.

(b) Property Taxes. The Trustor shall pay all real property taxes, assessments, and governmental charges levied against the Property prior to delinquency, and shall furnish proof of payment to the Beneficiary upon request.

(c) Insurance. The Trustor shall keep the improvements on the Property continuously insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as the Beneficiary may reasonably require, in an amount not less than the full replacement cost of the improvements. The Trustor shall name the Beneficiary as loss payee/mortgagee on each policy.

(d) Maintenance. The Trustor shall maintain the Property in good repair, shall not commit or permit waste, and shall not materially alter or remove improvements without the Beneficiary's prior written consent.

(e) Compliance with Law. The Trustor shall comply with all applicable federal, state, and local laws, ordinances, and regulations affecting the Property, including environmental, zoning, and building code requirements.

(f) Inspection. The Beneficiary or its agents may enter and inspect the Property at reasonable times upon reasonable notice to the Trustor (except in the case of an emergency).

EVENTS OF DEFAULT

Each of the following shall constitute an "Event of Default" under this Deed of Trust:

(a) Failure to pay any amount due under the Note or this Deed of Trust within ten (10) days after it becomes due;
(b) Failure to perform any other covenant, condition, or obligation under the Note, this Deed of Trust, or any other Loan Document, and such failure continues for thirty (30) days after written notice from the Beneficiary;
(c) Sale, transfer, conveyance, or further encumbrance of the Property or any interest therein without the Beneficiary's prior written consent (subject to any applicable statutory exemption such as the federal Garn-St. Germain Depository Institutions Act of 1982);
(d) Failure to maintain insurance required under Section 3(c), or failure to pay real property taxes, assessments, or other charges that could become a lien on the Property;
(e) Bankruptcy, insolvency, assignment for the benefit of creditors, or appointment of a receiver for the Trustor or for substantially all of the Trustor's assets;
(f) Material misrepresentation by the Trustor in any Loan Document or in any statement furnished to the Beneficiary in connection with the loan.

Upon the occurrence of an Event of Default, the Beneficiary may, at its option and without further notice or demand (except as required by applicable state law), declare the entire unpaid principal balance of the Note, all accrued interest, and all other Secured Obligations immediately due and payable, and may invoke the power of sale and any other remedies provided in this Deed of Trust or available under applicable law.

POWER OF SALE

Upon the occurrence and during the continuance of an Event of Default, the Beneficiary may direct the Trustee, and the Trustee shall, sell the Property at public auction to the highest bidder for cash, in compliance with the non-judicial foreclosure procedures of the State of Texas, including all applicable notice and recording requirements. The Trustee shall apply the proceeds of sale in the following order: (i) to the costs and expenses of sale, including reasonable trustee's fees and attorneys' fees as permitted by applicable state law; (ii) to all sums secured by this Deed of Trust; and (iii) any surplus to the person or persons legally entitled thereto.

The Trustee's deed conveying the Property at such sale shall be conclusive evidence of the truth of the matters stated therein, except as against the Trustor, and recitals therein shall be prima facie evidence of compliance with all statutory requirements. The non-judicial foreclosure procedure shall comply with the specific notice periods, recording requirements, and rights of reinstatement and redemption applicable in the State of Texas.

FORECLOSURE PROCEDURE AND NOTICE REQUIREMENTS

In addition to and supplementing the power of sale set forth in Section 5, the parties agree to the following procedural framework, which shall apply to the extent it does not conflict with applicable mandatory state law:

(a) Cure Period. Following an Event of Default consisting of failure to pay, the Trustor shall have 30 days after written notice of default in which to cure the default by paying all sums then due, together with the Beneficiary's actual costs and reasonable attorneys' fees incurred to date.

(b) Notice of Default. The Trustee shall record a Notice of Default in the office of the recorder of Travis County, State of Texas, and shall mail a copy by certified mail to the Trustor at the address shown above (or such other address as the Trustor may designate in writing). At least 30 days shall elapse between recording of the Notice of Default and recording of the Notice of Sale.

(c) Notice of Sale. The Trustee shall provide a Notice of Sale not less than 90 days prior to the scheduled sale date, by recording, posting, publication, and mailing as required by the non-judicial foreclosure statutes of the State of Texas.

(d) Reinstatement. The Trustor shall have the right to reinstate this loan at any time prior to the recording of the Notice of Sale by paying all amounts then due, together with the Beneficiary's actual costs and reasonable attorneys' fees, in accordance with the reinstatement provisions of the State of Texas.

(e) Postponement. The Trustee may postpone the sale by public proclamation at the time and place last appointed for the sale, without further notice or recording.

DEFICIENCY JUDGMENT

To the extent permitted by applicable state law, the Beneficiary RESERVES the right to seek a deficiency judgment against the Trustor for any portion of the Secured Obligations that remains unpaid after application of the proceeds of the trustee's sale. The parties acknowledge that some U.S. states (including California for purchase-money obligations under California Code of Civil Procedure section 580b, and several other states) statutorily prohibit deficiency judgments following non-judicial foreclosure of certain residential loans.

DUE-ON-SALE CLAUSE

If the Trustor sells, conveys, transfers, leases for a term exceeding three (3) years, or otherwise alienates the Property or any interest therein, whether voluntarily or involuntarily, without the Beneficiary's prior written consent, the Beneficiary may, at its option and to the extent permitted by applicable law, declare all sums secured by this Deed of Trust immediately due and payable.

This clause is intended to be enforceable to the maximum extent permitted by the federal Garn-St. Germain Depository Institutions Act of 1982 (12 U.S.C. § 1701j-3), which generally preempts state restrictions on due-on-sale enforcement but exempts certain transfers, including transfers to a spouse or child, transfers resulting from death, and transfers into an inter vivos trust where the Trustor remains a beneficiary.

PREPAYMENT

The Trustor may prepay all or any portion of the principal balance of the Note without penalty or premium at any time, with accrued interest to the date of prepayment. Partial prepayments shall be applied to the most remote installments of principal.

ESCROW / IMPOUND ACCOUNT

The Trustor shall pay to the Beneficiary, together with each installment of principal and interest, a sum equal to one-twelfth (1/12) of the annual real property taxes and insurance premiums for the Property, as estimated from time to time by the Beneficiary. Such sums shall be held by the Beneficiary in a non-interest-bearing escrow account (or interest-bearing if required by state law) and applied to payment of taxes and insurance when due.

The Beneficiary's administration of the escrow account shall comply with the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. §§ 2601-2617, and Regulation X promulgated thereunder, including the limitations on escrow account balances and the requirement to provide annual escrow account statements.

LATE CHARGES

If any installment payment is not received by the Beneficiary within ten (10) days after the date it is due, the Trustor shall pay a late charge equal to 5% of the overdue payment. The parties acknowledge that this late charge represents a reasonable estimate of the costs incurred by the Beneficiary in handling delinquent payments and is not a penalty.

This provision is subject to any state-specific maximum late charge limitations and to the federal Truth in Lending Act (15 U.S.C. §§ 1601 et seq.) where applicable.

ATTORNEYS' FEES

In any action, suit, or proceeding to enforce or interpret this Deed of Trust or any of the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys' fees, costs, and expenses from the non-prevailing party, in addition to any other relief to which the prevailing party may be entitled.

ADDITIONAL PROVISIONS

Special Provisions:
Borrower shall maintain hazard insurance with a deductible not exceeding $5,000 and shall furnish a certificate evidencing such coverage to Beneficiary annually within thirty (30) days of policy renewal.

RECONVEYANCE

Upon written request of the Beneficiary stating that all sums secured by this Deed of Trust have been paid in full and surrender of this Deed of Trust and the Note to the Trustee for cancellation, the Trustee shall reconvey, without warranty, the Property held hereunder. The recitals in any reconveyance executed under this Deed of Trust of any matters or facts shall be conclusive proof of the truth thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Any reconveyance fee chargeable by the Trustee shall be paid by the Trustor.

SUBSTITUTION OF TRUSTEE

The Beneficiary may, at its option and without notice to the Trustor, appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by the Beneficiary and recorded in the office of the recorder of the county in which the Property is situated. From the time the substitution is recorded, the new trustee shall succeed to all the powers, duties, authority, and title of the original Trustee.

GOVERNING LAW AND SEVERABILITY

This Deed of Trust shall be governed by and construed in accordance with the laws of the State of Texas, without regard to its conflict-of-laws principles. The non-judicial foreclosure procedures, notice requirements, redemption rights, and lien priority shall be determined under the laws of the state in which the Property is located.

If any provision of this Deed of Trust is held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the remaining provisions, which shall continue in full force and effect to the maximum extent permitted by law. The parties intend that any invalid provision shall be reformed to the minimum extent necessary to render it enforceable while preserving its original purpose.