Private lending : Who keeps signed original recorded documents

4 Replies

Hi, I am lending money to my friend. It will be recorded by title company as first lien. so my question is  who keeps the Original signed documents after recording.

It will be kept with title company, or as a lender I should have original documents.

I did lending before at that time I didn't get original documents , title company just email me digital signed bundle of all documents.

What is benefit/loss(if any) if I as a lender insist for original documents.


the impoArtant document is the NOTE.. you want the original NOTE for sure.. most notes are not recorded.

the mortgage or trust deed is recorded and since its of record the orginal is not necessary since you can get it from the recorder at anytime ..  but generally on the mortgage or DT there is a spot at the top where you fill in where the orginal is to be mailed by the county after recording that should be your address.. 

Even though you can always get a legally binding certified copy of your mortgage or deed of trust, @Raj G. , as the lender, you should possess all original documents. This is not limited to the note and mortgage/DOT but any signed personal guarantee, 1003, all disclosures, and anything else your borrower or closing agent signs.

Your lender's instructions, which are typically signed by your borrower and closing agent, should be clear which documents you are to receive as a condition of funding. Never assume anyone can read your mind. Our instructions specify document-by-document which must be original, and which can be a certified copy. Obviously, your mortgage/DOT should specify your address when the recorder mails it out.

Honestly, in TEXAS, the only document that this really matters is the wet-ink promissory note.  Everything else can be a copy, e-copy, a copy-of-a-copy for all that it matters.  Even then, having a copy of the promissory note instead of a wet-ink won't kill enforceability like it used to do, but certainly will make your legal bill a smidge smaller if you had to go to court on it.

In fact, for anything that was recorded, the recorded copy is much more important than an original (unrecorded) document.

Buyer is entitled to the original recorded deed, not the lender.  Even that doesn't really matter from a legal-enforceability pov. 

In Texas, demanding an original (sans promissory note) is kinda petty because we have the Uniform Electronic Transactions Act.  This pretty much makes all other concerns a moot point.  "Uniform" because businesses like the rules to be the same in every state, so....  An electronic copy of everything is treated, legally, as the original.