What is a deed of trust?

A deed of trust is a legal document used in the state of Alaska to transfer the legal title of a piece of property from one party (the trustor) to another party (the trustee) for the benefit of a third party (the beneficiary). The trustor is the individual who owns the property, the trustee is the individual or organization who holds the legal title to the property, and the beneficiary is the individual or organization who will receive the benefit of the trust. A deed of trust is commonly used when a property owner is taking out a loan and needs to secure that loan with the property. In this situation, the trustor and the lender are both parties to the deed of trust. The trustor conveys the legal title of the property to the trustee, such as a title company, for the benefit of the lender. The deed of trust also specifies the terms and conditions of the loan. Once the deed of trust is signed, the property is held in trust until the loan is paid off. If the loan is not paid as agreed, the trustee can take possession of the property and sell it to repay the loan. The proceeds from the sale are then distributed to the lender first, followed by the trustor if there is a remainder. A deed of trust is an important component of a secured loan transaction and is used to protect and enforce the rights of the lender in Alaska.

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What is a deed of trust?

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