Real Estate Law
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Good afternoon. My name is Richard. In addition to the promissory note and the the purchase agreement, you also need a document that gives you a lien on the land/building to secure the note. That document is a deed of trust which needs to be signed by your buyer, witnessed and notarized, and then recorded in the real property records of the city/county in which the property is located. Then, if the buyer defaults, you have the right to foreclose on that property and only if the foreclosure of the property pays you back everything you are owed, including penalties and interest, and the cost of the foreclosure, would the buyer be entitled to the surplus. If the foreclosure sale does not generate sufficient proceeds to pay you in full, you can also sue the buyer for any shortfall.
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Just to follow up, if you need a template for a deed of trust, let me know. Have a nice evening!