What is a deed of trust?

A deed of trust is a legal document that is commonly used to secure a loan in the state of Washington. It is an agreement between the borrower (the trustor) and the lender (the trustee) that transfers the borrower’s property and title to the lender as security for the loan. In other words, the borrower gives the lender the right to take the property if the loan is not repaid. The deed of trust must be properly recorded and filed with the county clerk in the county in which the property is located. Upon filing, the deed of trust becomes a lien on the property and is legally binding. The lender has the right to foreclose and take legal possession of the property in order to protect their investment if the borrower defaults on the loan. The borrower will usually receive a copy of the deed of trust and the original will be retained by the lender. This document is important for the borrower to understand their rights and responsibilities under the loan agreement. It outlines the terms of the loan, the amount of the loan, and the consequences of default. The deed of trust is an important document that provides protection to both the borrower and the lender. It creates a legal relationship between them and legally secures the lender’s interest in the property. It is an important tool used in property law in Washington and it should be understood before entering into any loan agreement.

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