What is a deed of trust?

A deed of trust is a legal document used in California to secure a debt or other obligation with real property. It is usually between a borrower and a lender, whereby the borrower transfers the title of a real property to a trustee, who holds it as security for the repayment of the loan. Once the loan is repaid, the trustee transfers the title back to the borrower. In California, a deed of trust is generally used in the context of home loans and mortgages. When a borrower takes out a loan to purchase a home, they transfer the title of the property to the lender. The title remains with the lender until the loan is paid in full. A deed of trust is also beneficial for a lender, as it provides them with more protection than a basic loan. In the event that the borrower defaults on the loan, the lender can foreclose on the property to recoup their losses. Overall, a deed of trust is an important legal document used in California to secure a debt or other obligation with real property. It is typically used in the context of home loans and mortgages, providing the borrower and lender with added protection if default on the loan occurs.

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What is a deed of trust?

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