Process of a Tranfering a Deed in Sub2

I am now reading my third book on real estate investing and am interested in sub2 financing. However, it sounds like a seller can just sign over the deed to a buyer with a $1 or $10 consideration fee. The buyer would then get the delinquent payments caught up and make all the monthly payments to the lender. I just looked at my own deed of trust and can’t find anywhere on the document where a current owner would sign the deed over to another party. This isn’t like tranfering an automobile title from one owner to another.

How does the deed transfer take place?

You’ll have to get a new deed draftet, signed by all parties and notarized.

Is this a deed that I can draft or do I have to go to a settlement attorney?


I see the issue already.

You said:
" I just looked at my own deed of trust"

And in this statement, lies the problem.

Not a big deal, we can help you here.

First, when you are reading about ‘subject to’ transactions, when the books mention a ‘deed’, they are talking about a document that transfers ownership rights (title), to another party.

Now, the TRUST DEED you mention would be what secures the debt you owe to the lender, to the title of your house.
Kind of like a mortgage, just a different legal instrument that accomplishes the same thing…

So, for clarification:

A Deed of trust is:
“A document executed by the owner of land by which the land is given as security for the payment of a note or other performance of an obligation. In California and some other states the Deed of Trust is usually used in place of a mortgage.”

A DEED: is merely a document used to transfer insterest (title) to/in a property from one person to another.

Some common “deeds”, would be:

Quit claim deed: This merely relinquishes any right or title in a property someone may have, but does not warrrant title condition.

A warranty deed: This deed transfers interest in a property to another party, and warrants condition of title.

And, the one you are probably seeing mentioned in your studies is:
“Warranty deed to trustee”, this is the type of deed used when a title holder (homeowner), transfers title into a trust of some sort, usually a land trust when used in the context of a subject to transaction.

Anyway, does that help at all?

Take care,
Jim FL

Jim FL, this helped a lot. Actually, after I posted my question, I did a search in this forum for quit claim deeds. I read up on quit claim deeds, warranty deeds and other deeds. I’m new, but am a sponge for good information.

This forum is a great resource and compliments the books I’ve been reading.