Document background
The Short Form Deed of Trust and Assignment of Rents is commonly used in Canadian real estate financing transactions where lenders require security over both the property and its income stream. This document type emerged as a more streamlined alternative to lengthy traditional trust deeds, particularly suitable for straightforward property transactions. It combines the security features of a mortgage with the flexibility of a trust arrangement and includes provisions for rent assignment, making it particularly valuable for income-producing properties. The document typically outlines the trust relationship, secured obligations, property description, assignment of rents provisions, default remedies, and power of sale rights, all while complying with provincial property laws and federal lending regulations. It's especially useful in commercial and multi-unit residential property financing where rental income is a significant consideration for the lender's security.
