Deed of Trust

A Deed of Trust refers to a legal document used in some states instead of a traditional mortgage for financing real estate. It involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee). The borrower transfers the legal title of the property to the trustee, who holds it as security for the loan. Once the loan is repaid in full, the trustee transfers the title back to the borrower.