Form CR-5 Short Form Deed of Trust and Assignment of Rents - California

What Is Form CR-5?

This is a legal form that was released by the United States District Court - Central District of California - a government authority operating within California. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is a CR-5 Short Form Deed of Trust?A: CR-5 Short Form Deed of Trust is a document used in California to secure a real estate loan.

Q: What is an Assignment of Rents?A: An Assignment of Rents is a provision in the deed of trust that allows the lender to collect rent from the property if the borrower defaults on the loan.

Q: What is the purpose of a Deed of Trust?A: The purpose of a Deed of Trust is to provide security for a real estate loan by giving the lender an interest in the property.

Q: What does it mean to assign rents?A: Assigning rents means giving the lender the right to collect rental income from the property if the borrower fails to make loan payments.

Q: Is the CR-5 Short Form Deed of Trust specific to California?A: Yes, the CR-5 Short Form Deed of Trust is specific to California and is commonly used in the state.

Q: What happens if the borrower defaults on the loan?A: If the borrower defaults on the loan, the lender may initiate foreclosure proceedings to take possession of the property.

Q: Can the lender collect rent from the property?A: Yes, if the borrower defaults on the loan, the lender can collect rent from the property through the Assignment of Rents provision.

Q: Is the CR-5 Short Form Deed of Trust a legally binding document?A: Yes, the CR-5 Short Form Deed of Trust is a legally binding document when properly executed.

Q: Can the borrower sell the property while the Deed of Trust is in place?A: Yes, the borrower can sell the property, but the buyer will need to assume or refinance the existing loan.

Q: What is the difference between a Deed of Trust and a Mortgage?A: The main difference is that a Deed of Trust involves a third party called a trustee, who holds the legal title to the property until the loan is fully repaid.