What is a deed of trust?

A deed of trust is a legal document used in property law in Florida that creates a security interest in a piece of property, transferring it from the owner (grantor) to a third person (trustee). The trustee holds the property for the benefit of another person or entity, known as the beneficiary. The deed of trust also outlines the terms of the agreement between the grantor and beneficiary, such as how the property may be used, and under what conditions it must be returned to the grantor. The deed of trust is often used in residential real estate transactions in Florida. The grantor conveys the title to the property to the trustee, who holds the title for the benefit of the beneficiary (the lender). The borrower (grantor) pledges to repay the loan to the lender on specified terms, such as length of loan, interest rate, and payments due. In the event that the borrower defaults, the trustee has the authority to foreclose on the property and sell it to satisfy the debt, with any remaining proceeds returned to the borrower. The deed of trust also outlines the legal rights and responsibilities of the parties involved, such as the obligation of the trustee to fairly administer the agreement, the ability of the grantor to terminate the agreement, and the rights of the beneficiary to collect the loan. The deed of trust is an important document in Florida real estate law and can help protect all parties involved in a residential real estate transaction.

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What is a deed of trust?

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