What is a deed of trust?

A deed of trust is a legal document used in real estate law in Hawaii. It is a form of security that is used to secure a loan and is most commonly used to secure a mortgage loan. It is similar to a mortgage, however, the deed of trust includes three different parties, the borrower, lender, and a neutral third party, known as a trustee. When a loan is secured by a deed of trust, the borrower transfers the legal title of the property to the trustee. The trustee holds the title in trust for the benefit of the lender. If the borrower fails to repay the loan, then the trustee can initiate foreclosure proceedings to take the property back and sell it in order to pay off the loan. The deed of trust is a flexible way to secure a loan and is one of the most common forms of security in Hawaii real estate law.

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What is a deed of trust?

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