What is a deed of trust?

A deed of trust is a legal document used in real estate transactions in the state of Washington. It outlines the rights of the borrower (known as the “trustor”) and the lender (known as the “beneficiary”) and is usually secured against the property being purchased. When the trustor takes out a loan to buy a property, they will sign a deed of trust which gives the lender an interest in the property. This interest is held in the form of a “security interest” that can be used to secure repayment of the loan in case the borrower defaults. The security interest given by the deed of trust allows the lender to take possession of the property and sell it if the borrower fails to make payments as agreed. The deed of trust also outlines the borrower’s obligations to the lender, such as making payments and keeping the property insured. The deed of trust is registered in the county records, making it a public document. This ensures that the lender’s interest in the property is publicly known, so that if the borrower defaults, the lender can take action to protect their rights.

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What is a deed of trust?

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