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All Inclusive Deed of Trust [AIDOT]: A Comprehensive Guide to Its Legal Definition
Definition & Meaning
An All Inclusive Deed of Trust (AIDOT) is a legal document that combines an existing loan with new financing terms. This type of deed is often used in real estate transactions, allowing a buyer to take over an existing mortgage while also securing additional funds for the purchase. The AIDOT acts as a secondary deed of trust, meaning it is subordinate to the seller's original mortgage, which remains active and is not paid off at the time of sale.
Table of content
Legal Use & context
AIDOTs are primarily used in real estate transactions, particularly in cases involving seller financing. They are relevant in civil law, especially in property law and real estate finance. Users can manage AIDOTs with the right legal tools, such as templates provided by US Legal Forms, which are drafted by experienced attorneys. This can help streamline the process of creating and executing an AIDOT.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A buyer purchases a home for $300,000. The seller has an existing mortgage of $200,000. The buyer can use an AIDOT to take over the seller's mortgage while securing an additional $100,000 for renovations.
Example 2: A homeowner wants to sell their property but still owes $150,000 on their mortgage. The buyer agrees to an AIDOT that includes the existing mortgage amount and an additional loan for $50,000 to cover closing costs. (hypothetical example)
State-by-state differences
State
Key Differences
California
AIDOTs are commonly used and recognized in real estate transactions.
Texas
Specific regulations may apply regarding seller financing and AIDOTs.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Common misunderstandings
What to do if this term applies to you
If you are considering using an AIDOT, first consult with a legal professional to understand the implications. You can also explore US Legal Forms for templates that can help you create an AIDOT tailored to your needs. If your situation is complex, seeking professional legal assistance is advisable.
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