Here are the key components and functions of a Deed of Trust: states, while others use mortgages to achieve the same purpose. This document is commonly used in some U.S. (beneficiary), and a neutral third party known as the trustee. It serves a similar purpose to a mortgage but involves three parties: the borrower (trustor), the lender What is a 'power of sale' clause in a Deed of Trust?Ī Deed of Trust, often used in real estate transactions, is a legal document that establishes a security interest in real property.What is the role of the trustee in a Deed of Trust?.How does a Deed of Trust differ from a Mortgage?.What Happens if I Don’t Use a Deed of Trust Form?.What Should I Include in a Deed of Trust?.As security against the loan, the borrower gives legal title to the property to the lender. With a deed of trust, a lender loans money to a borrower to purchase a home or other property.
