What is a deed of trust?

A deed of trust is a type of legal document used in real estate transactions in the state of Massachusetts. It is a document that is created when a borrower, also known as a trustor, transfers a property to a trustee as security for a loan. In most cases, this document will be used when the trustor is borrowing money from a bank or other lender. With a deed of trust, the trustee holds the title to the property until the loan is paid off. In addition, the trustee is also responsible for ensuring the terms of the loan are met as outlined in the trust deed. If the loan is not satisfied, the trustee has the power to foreclose on the property and sell it to recoup the debt. In Massachusetts, the deed of trust must be executed by the trustor, recorded with the Register of Deeds, and witnessed by at least one witness in order to be legally binding. It must also include all the terms of the loan, such as the interest rate, repayment terms, and other provisions. Once the deed of trust is recorded, it will become a public record and will be available for anyone to view. Overall, a deed of trust is an important document in real estate transactions, especially when borrowing funds, as it serves as a form of security against default payments and ensures the terms of the loan are met.

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