District of Columbia UCC-1 for Real Estate

• Category: Letters - Loans and Lending
• State: Multi-State
• Control #: US-0158LTR-2
• Format: Word; Rich Text

Description

This form is a sample letter in Word format covering the subject matter of the title of the form. The District of Columbia UCC-1 for Real Estate is a specific legal document that serves to establish and protect a creditor's interest in personal property that is used as collateral in a real estate transaction. It provides a means for lenders to secure their loans by ensuring their legal claim on the property in case of default or non-payment. The UCC-1 is filed with the District of Columbia Recorder of Deeds office and functions as a public record, alerting potential future creditors or other interested parties of the existing lien or security interest on the property. There are two main types of District of Columbia UCC-1 filings related to real estate: 1. UCC-1 Financing Statement: This filing is typically made by a lender or creditor who seeks to secure their interest in the property with the consent of the borrower. By filing a UCC-1 Financing Statement, the creditor indicates to others that they have a potential legal claim on the property and that any subsequent loans or claims should take this prior interest into account. It also allows the creditor to have priority over other parties in the event of foreclosure or sale of the property. 2. UCC-1 Partial Release or Termination: This type of UCC-1 filing is made when a portion of the collateral securing a loan is released or terminated. For instance, if a borrower has paid off a portion of their mortgage, the lender may file a UCC-1 Partial Release or Termination to acknowledge the reduced amount of collateral. This document formally releases the lender's claim on the specific portion of the property and ensures clarity in future legal and financial transactions. When considering real estate transactions in the District of Columbia, it is crucial for all parties involved, including lenders, borrowers, and potential creditors, to be aware of the significance of UCC-1 filings. It serves as an essential instrument for safeguarding the interests of lenders, establishing priority in the event of default or foreclosure, and maintaining transparency within the real estate market.

The District of Columbia UCC-1 for Real Estate is a specific legal document that serves to establish and protect a creditor's interest in personal property that is used as collateral in a real estate transaction. It provides a means for lenders to secure their loans by ensuring their legal claim on the property in case of default or non-payment. The UCC-1 is filed with the District of Columbia Recorder of Deeds office and functions as a public record, alerting potential future creditors or other interested parties of the existing lien or security interest on the property. There are two main types of District of Columbia UCC-1 filings related to real estate: 1. UCC-1 Financing Statement: This filing is typically made by a lender or creditor who seeks to secure their interest in the property with the consent of the borrower. By filing a UCC-1 Financing Statement, the creditor indicates to others that they have a potential legal claim on the property and that any subsequent loans or claims should take this prior interest into account. It also allows the creditor to have priority over other parties in the event of foreclosure or sale of the property. 2. UCC-1 Partial Release or Termination: This type of UCC-1 filing is made when a portion of the collateral securing a loan is released or terminated. For instance, if a borrower has paid off a portion of their mortgage, the lender may file a UCC-1 Partial Release or Termination to acknowledge the reduced amount of collateral. This document formally releases the lender's claim on the specific portion of the property and ensures clarity in future legal and financial transactions. When considering real estate transactions in the District of Columbia, it is crucial for all parties involved, including lenders, borrowers, and potential creditors, to be aware of the significance of UCC-1 filings. It serves as an essential instrument for safeguarding the interests of lenders, establishing priority in the event of default or foreclosure, and maintaining transparency within the real estate market.