What is a deed of trust?

A deed of trust is a legal document used in residential real estate law in the state of Virginia. It is used to transfer title of a property from one person to another, usually in exchange for some kind of payment like a loan. A deed of trust essentially has two parts: the grantor, who is the person transferring title of the property, and the trustee, who holds the legal title of the property. A deed of trust also has a beneficiary, which is usually the lender providing the loan. When a deed of trust is used, the title of the property is held by the trustee instead of the grantor. This ensures that if the grantor fails to make loan payments, the lender can foreclose on the property. The deed of trust will include a clause that states specifically what will happen if the grantor does not make payments. In Virginia, a deed of trust is recorded with the local county government. This provides public notice of the transfer of title and protects the interests of the lender and trustee. The deed of trust is a common legal document in the state of Virginia and is essential in residential real estate law. It allows for the transfer of title in a way that protects both the grantor and the lender.

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What is a deed of trust?

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