In a deed of trust, the trustee is the party responsible for holding the title to the property. The trustee transfers the title to the borrower after the lender is repaid in full. If the borrower fails to repay or otherwise defaults on the loan, the trustee will transfer title to the lender.

Who is the mortgagee and mortgagor?

In a deed of trust, the mortgagee is the party lending money (usually a bank), while the mortgagor is the party borrowing the money.

Who is the guarantor?

A guarantor, as the name implies, guarantees repayment on a loan if a borrower defaults. Lenders may require a guarantor, especially if the borrower has poor credit.

What is the difference between a mortgage agreement and a deed of trust?

There are two main differences between a mortgage and a deed of trust. First, a deed of trust uses a third party, called a trustee, to hold the title to a piece of real estate while the borrower repays the lender. When the loan is repaid, the trustee transfers title to the borrower. However, if the borrower defaults, the trustee will transfer the title to the lender. This arrangement helps ensure that both parties' rights are respected. The second difference has to do with the method for pursuing foreclosure in the event of default. Under typical mortgages, lenders must seek foreclosure through the court system—called judicial foreclosure. However, deeds of trust contain a power of sale clause that allows the trustee to pursue foreclosure outside of court—called non-judicial foreclosure. Non-judicial foreclosure is thought to be a faster and less costly method of foreclosing. Note that some mortgages (including LegalNature's mortgage agreement) also contain a power of sale clause, thus allowing lenders to choose whichever remedy they prefer.

Deed of Trust

A deed of trust is used to create a lien on real property as collateral for a loan.

It transfers the real property to a neutral third party (trustee) and serves as a security interest until the loan is fully paid.

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Deed of Trust

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Our deed of trust

Adequately protects the interest of both parties
Ensures a faster and affordable non-judicial foreclosure
Provides step-by-step guidance for quickly completing your deed
Is compliant throughout all states and the District of Columbia
Is specifically tailored to ensure acceptance by your local County Clerk’s Office

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Gather Information

As you complete your deed, you will need to be able to provide some basic information about the parties involved and the property for transfer.

Complete Our Short Questionnaire

Use the information you collected to complete the deed of trust. We make this easy by guiding you each step of the way and helping you to customize your document to match your specific needs.

Review and Sign

In most states, your deed of trust will be considered effective and executed once it has been signed by both parties.

File Your Deed of Trust

It is highly recommended to file your deed with the County Recorder’s Office or County Clerk’s Office. By recording your completed deed as soon as possible, you gain legal protection from potential adverse claims by other parties.

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