DEED OF TRUST Meaning and
Definition
-
A deed of trust refers to a legal document that creates a lien on a property as security for a loan. It is a commonly used instrument in real estate transactions, especially in mortgage loans. The deed of trust outlines the terms and conditions of the loan, the rights and obligations of the borrower and lender, and the procedures in case of default.
Typically, a deed of trust involves three parties: the borrower (also known as the trustor or grantor), the lender (referred to as the beneficiary), and a neutral third party known as the trustee. The borrower conveys the legal title to the property to the trustee, who holds it on behalf of the lender until the loan is repaid. Once the borrower fulfills the loan obligation, the trustee releases the title back to the borrower.
The deed of trust is recorded with the local land records office to establish a public record of the lien on the property. In case of default, the lender may initiate foreclosure proceedings through the trustee, who has the authority to sell the property to satisfy the debt. This process is known as non-judicial foreclosure, as it does not involve the courts.
In summary, a deed of trust is a legal agreement that creates a lien on a property to secure a loan. It defines the rights and obligations of the borrower, lender, and trustee, and provides a mechanism for the lender to take possession of the property in case of default.
Common Misspellings for DEED OF TRUST
- seed of trust
- xeed of trust
- ceed of trust
- feed of trust
- reed of trust
- eeed of trust
- dwed of trust
- dsed of trust
- dded of trust
- dred of trust
- d4ed of trust
- d3ed of trust
- dewd of trust
- desd of trust
- dedd of trust
- derd of trust
- de4d of trust
- de3d of trust
- dees of trust
Infographic
Add the infographic to your website:
