What is a deed of trust?

A deed of trust is a legal document used in the state of Virginia to provide a form of security interest in real estate property. This document is typically used in a mortgage transaction, and it allows the borrower, or grantor, to pledge their interest in the real estate property to the lender, or beneficiary. The deed of trust gives the beneficiary (the lender) the power to foreclose on the property if the borrower fails to meet the terms of the loan agreement. The deed of trust is recorded with the local land records office and it becomes a lien against the real estate property. The deed of trust also allows the borrower to assign the interest in the real estate property to a third party, such as a title company, to hold in trust on behalf of the lender. This trust ensures that the lender is secure in their interest in the property even if the borrower fails to meet the terms of the loan agreement. Lastly, the deed of trust contains the terms and conditions of the loan, such as the interest rate, the repayment requirements, and any limitations that the lender has placed on the borrower. It is important to read and understand all of the terms of the deed of trust before signing it.

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What is a deed of trust?

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