Project Stage 4:
Performance Packet 4
By
Karen Jean Marpa
Professor Rogers
Business Law and Ethics
13 December 2014
Deed of Trust and Mortgage
The owner of the building is considering selling the property, and as the Operations Manager I have created this memorandum with the pros and cons if Widget World Company decides to purchase the warehouse and factory.
Deed of trust is a deed that transfers property to trustee for benefit of creditor (Ashcroft, Ashcroft and Patterson).
Deed of Trust
Pros Cons
• Security with the trustee
• Rights to redemption
• The only payments need to be made is for the property
• No court foreclosures are necessary • The property will be foreclosed by the trustee if we fail to make payments
• The trustee will have the title
• The
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I believe that in the long run a mortgage would be the best.
Lien and Mechanic’s Lien
Lien is an encumbrance or claim against property (Ashcroft, Ashcroft and Patterson). Mechanic’s lien: lien of people who have furnished materials or labor on property (Ashcroft, Ashcroft and Patterson).
The differences between the two is the claims and who has the claim. Lien is the claim of the property and mechanic’s lien is the claim of the materials for the construction of the property and the workers. With a lien, the individual with the mortgage has the claim. With mechanic’s lien, the workers and the people who furnish the materials for the property have the claim. Works