Deed of Trust

From LawDepot Law Library

A Deed of Trust is a document where a borrower transfers the legal title for its property to a trustee who holds the property in trust as security for the payment of the debt to the lender. If the borrower pays the debt as agreed, the deed of trust becomes void and the lender executes a Deed of Reconveyance. If, however, the borrower defaults, the trustee may sell the property at a public sale under the terms of the deed of trust. In some jurisdictions, a mortgage is used instead of a deed of trust.