What is a deed of trust with a power of sale?

A deed of trust with a power of sale is a type of real estate transaction often used in South Dakota. It is a type of legal instrument for a borrower (also known as the trustor) to transfer a real estate property to a trustee. The trustee holds the property as a security for a loan that the borrower has received from a lender (also known as the beneficiary). In the event that the borrower defaults on the loan, the trustee has the power to sell the property to recover the money owed to the lender. This is known as a power of sale. The sale is conducted by the trustee via a public auction and any proceeds from the sale are used to pay off the loan. It is important to note that a deed of trust with a power of sale is different than an actual deed. With a deed, the property is transferred from the seller to the buyer only. With a deed of trust, the borrower transfers the property to a trustee, who holds it for the benefit of the lender in case of default. In conclusion, a deed of trust with a power of sale is a type of real estate transaction often used in South Dakota. It is a transaction in which the borrower transfers a real estate property to a trustee who holds it as security for a loan. If the borrower defaults on the loan, the trustee can sell the property to pay off the loan via a public auction.

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What is a deed of trust with a power of sale?

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