Key description
- You must use this document along with the Deed of Trust and Promissory Note, also on this site. A deed of trust or trust deed is like a mortgage. Rather than transferring ownership of property like a deed, a trust deed makes a piece of real property security (collateral) for a loan, like a mortgage. If the loan is not repaid on time, the lender can foreclose on and sell the property and use the pr
- A trust deed is always used together with a promissory note that sets out the amount and terms of the loan. The property owner signs the note, which is a written promise to repay the borrowed money.
- As long as the borrower (the property owner), which is the "trustor," makes the loan paymetns and keeps other promises in the trust deed, the lender or "trustee" has no control over the property. However, if the borrower defaults, however, the trustee has the power to sell the property to pay off the loan without having to file an action in court.
- The lender (also known as “beneficiary”) is then repaid from the proceeds. There are 3 parties to these agreements : the beneficiary (the lender). the borrower and the trustee (which is when a bank or other financing entity financing the purchase, the trustee is usually a title or trust company, but it could be a real estate broker. If there are two or more borrowers, they will be borrowing the mo
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