Do the Deed of Trust and Note represent a contract?

Asked about 1 year ago - Bellevue, WA

There is no offer made by Lender in the Note, so it appears to be just that, a Note, and not a contract. There is one offer of performance by Lender in the DoT, which is the reconveyance agreement - does that make the DoT a contract? Or are they just a Promise and some covenants - but NOT a contract?

Additional information

There is no agreement in the Promissory Note by "Lender" to "lend" anything - I read it and there's nothing there! In fact, it says "In return for a loan that I HAVE received", so the "loan" is not specified and the party that made the unspecified loan is not identified, but that is not the question. A contract comprises offer and acceptance, correct? So, the "Lender" made a written offer in the DoT to return the original documents. That is the only OFFER listed in the documents - does that make the DoT + Note a contract? What would represent "performance" on the part of "Lender" in such a contract? Purely theoretical - not facing foreclosure or anything like that...

Attorney answers (4)

  1. Kevin Terry Steinacker

    Contributor Level 11

    3

    Lawyers agree

    Answered . It is hard to imagine a scenario where a note and deed of trust would not be enforceable as a contract. A contract requires offer, acceptance, and consideration. so, as Mr. Starrett said, the bank's offer was to lend you money to purchase a home provided you pay back the loan with interest and grant a security interest in the home. You accepted when you took the money and signed the loan docs. There is consideration for both sides: you get money now and the bank gets a lot of interest over time. The bank's performance is essentially done once the loan is funded.

    I am not your attorney. My response is provided for informational purposes only and does not constitute legal advice.
  2. Alan James Brinkmeier

    Contributor Level 20

    3

    Lawyers agree

    Answered . .

  3. Minh T. Tran

    Pro

    Contributor Level 12

    1

    Lawyer agrees

    Answered . The offer is to lend you money in exchange for a promissory note and security interest (aka lien) on your house. The deed of trust is the security instrument that evidences the lien.

    This usually becomes more clear after a borrower files bankruptcy. Bankruptcy can eliminate the debt (the note), but it won't eliminate the lien on the house (deed of trust). The surviving deed of trust allows the bank to foreclose on a house after the borrow files bankruptcy.

    Minh Tran

    Sent from my mobile device. Please excuse the brevity.

    Information applicable in Washington State. This information is not intended to create, and receipt or viewing... more
  4. Carl H Starrett II

    Contributor Level 16

    2

    Lawyers agree

    Answered . Regardless of what label you put on them, they are both forms of a contractor. You agreed to borrow mean and they agreed to lend it to you. You agreed to pay it back at a certain interest rate and payment schedule. You gave them a lien on your property that has certain consequences if you fail to repay the loan.

    First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy.... more

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