About Trust Deeds
The aim of this website is provide the most accurate information about Trust Deeds.
A deed is the document that transfers ownership of real estate. It contains the names of the old and new owners and a legal description of the property, and is signed by the person transferring the property.
A trust deed (also called a deed of trust) isn’t like the other types of deeds; it’s not used to transfer property. It’s really just a version of a mortgage, commonly used in some states (California, for example). A trust deed transfers title to land to a “trustee,” usually a trust or title company, which holds the land as security for a loan. When the loan is paid off, title is transferred to the borrower. The trustee has no powers unless the borrower defaults on the loan; then the trustee can sell the property and pay the lender back from the proceeds, without first going to court.
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What is a deed of Trust ?
A deed of trust, also known as a trust deed, is a unique form of loan
recorded within public records as a deed that has a lien on the property. Trust
deeds are used by borrowers instead of conventional mortgages. This is usually
done in order to obtain greater flexibility on the loan that would be available
under the rules and regulations in standard lending institutions such as banks.
With a deed of trust, there are three main parties involved. These parties
include the trustor - which is the person who is borrowing the money - the
beneficiary - also known as the lender - as well as a neutral third party. This
third party is the trustee, who temporarily holds part of the property title
until the loan is paid in full.