What is a deed of trust?

A deed of trust is a legal document used in real estate transactions in North Carolina. It is a document that a borrower signs in order to secure a loan from a lender. The deed of trust outlines the terms of the loan such as the amount, interest rate, and repayment schedule. It also outlines the lender’s rights in the event that the borrower defaults on the loan. The deed of trust also provides the lender with a lien on the property. This means that if the borrower defaults on the loan, the lender can take possession of the property and sell it in order to recoup the money they are owed. The deed of trust also allows the lender to foreclose on the property if the borrower does not make payments on time. In North Carolina, the deed of trust is recorded in the county where the property is located, so it is available for anyone to find. Overall, a deed of trust is an important document that helps to protect both the lender and the borrower in a real estate transaction. It outlines the rights of both parties and provides legal protection in the case of a default.

Related FAQs

What is an adverse possession claim?
What are the requirements for becoming a real estate broker?
How do I evict a tenant?
What is a deed of trust?
What is a landlord’s lien?
What is an estoppel certificate?
What is the difference between a condo and a cooperative?
What are the laws governing real estate brokers?
What is the difference between a lien and a mortgage?
What is a restrictive covenant?

What is a deed of trust?

Related FAQs

Related Blog Posts