What is a deed of trust?

A deed of trust is a legal document that is used to secure real estate transactions in Texas. It is a three-party instrument (the borrower, the lender, and the trustee) that allows real estate to be held in trust for the benefit of the lender by a trustee. The deed of trust effectively allows the lender to foreclose on the property in the event of a default by the borrower. The deed of trust contains the terms of the loan, including the amount of the loan, the interest rate, the time frame of the loan, and any additional conditions. In Texas, the deed of trust must be notarized and filed with the county clerk in order to take effect. The deed of trust names the trustee, who holds the deed of trust on behalf of the lender. The trustee’s primary role is to hold title to the property if there is a default on the loan, and to initiate foreclosure proceedings. The trustee may also collect payments from the borrower, and distribute them to the lender. In Texas, a deed of trust is commonly used as a security instrument for real estate transactions. It is an important way to protect both the borrower and the lender in a real estate transaction.

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What is a deed of trust?

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