deed of trust

Definition of "deed of trust"
  1. A document that pledges real property as security for a loan. It is used in certain U.S. states instead of a mortgage. The owner of the property transfers the title to a trustee, usually a title or escrow company. This company holds the title in trust for the lender. When the loan is paid off, the owner gets the title back. If the loan isn't paid, the lender can instruct the trustee to reclaim the property to pay off the loan
How to use "deed of trust" in a sentence
  1. The couple used a deed of trust to secure their home loan.
  2. The lender demanded foreclosure on the property as per the deed of trust due to unpaid dues.
  3. Upon full payment of the loan, the trustee returned the title to the owner, terminating the deed of trust.

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