Deed of Trust

Question: Real Estate Fraud. I loaned a friend $20,000.00 which he secured with a Deed of Trust to his house. when I?

tried to record the deed I discovered it was a xerox copy which could not be recorded. This "friend" knew what he was doing and refuses to give me the original, and he is 2 months late in repaying me the full amount. He has made a payment of $8000.00 but refuses to pay any more. Is this a criminal act of fraud and can he go to jail for this? His intentions were to give me a xeroxed copy so I could not record the deed.

Answer: To be honest, it's not fraud. What he is doing is not right, but it is not fraud, nor is it a criminal act.

Common sense would tell you that only original documents can be recorded. It was your responsibilty to exchange the money for the original Deed of Trust, not a xerox copy.

His understanding may have been that the original document was to be held in escrow and not recorded pending repayment.

You can still sue him for the money and compel him to produce and hand over the original document so that it can be recorded.

The fact that you only have a photocopy does not absolve him from his obligation to you under the agreement.

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