What is the difference between a trust deed and a deed of trust?
A trust deed and a deed of trust are two different legal instruments that are used in Hawaii to facilitate property transactions. A trust deed is a document that transfers title to a piece of property from the owner to a third-party, called the trustee, to hold in trust for the benefit of the beneficiary. The beneficiary is usually the owner or a designated person who the owner wants to receive the benefits of the property. The trustee has the legal title to the property but is bound to follow the terms and conditions of the trust deed. A deed of trust is a document that is used to secure a loan against a piece of property. The deed of trust creates a lien against the property and allows the lender to repossess the property if the borrower fails to make the payments. The deed of trust also names a trustee, usually a bank or other lender, who holds the deed of trust and administers it according to the terms of the loan. In Hawaii, the trustee may be required to hold a hearing before taking possession of the property. In summary, a trust deed transfers title to a third-party, usually for the benefit of another individual, while a deed of trust is used to secure a loan against a property. Both documents name a trustee who administers the deed according to the terms of it.
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