What is the difference between a trust deed and a deed of trust?
The difference between a trust deed and a deed of trust in Washington is that a trust deed is used to transfer title of real estate to another party, while a deed of trust is used to secure a loan. A trust deed is used when a seller of real estate transfers legal ownership of the property to the buyer. The buyer is responsible for repaying the loan and the deed is a proof of the loan. A trust deed in Washington allows the buyer to take possession of the title and the property, but the title is reserved for the lender until the loan is repaid. A deed of trust is a document that states the terms of a loan between the lender and the borrower. The borrower agrees to a set of terms, including interest rates and repayment amounts. The deed of trust also grants the lender security in case the borrower defaults on the loan. The deed of trust gives the lender the right to foreclose on the property if the borrower does not repay the loan. In summary, a trust deed is used to transfer title of real estate from one party to another, while a deed of trust is used to secure the loan. A trust deed in Washington grants the buyer the right to possess the property, but the title is still reserved for the lender. A deed of trust grants the lender security in the event of a loan default.
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