deed of trust
Học thuậtThân thiện
Definition
- Noun:
- A legal document that transfers property to a trustee: A "deed of trust" is a written legal instrument that conveys the title of a property to a neutral third party (a trustee). This is typically done to secure a loan, such as a mortgage or promissory note, for the benefit of a lender (the beneficiary). If the borrower defaults, the trustee has the power to sell the property to repay the loan.
Usage
- The term "deed of trust" is used primarily in real estate and finance contexts to describe a specific type of security instrument. It functions similarly to a mortgage but involves three parties (borrower, lender, trustee) instead of two (borrower, lender).
- It is a formal, legal term.
Examples
- Noun:
- The bank required a deed of trust to be recorded against the property as security for the loan.
- Upon signing the deed of trust, the borrower (trustor) conveyed the property title to the trustee.
Advanced Usage
- "To be in deed of trust": A property that is secured by this instrument.
- The house is currently in deed of trust to secure the construction loan.
- "To reconvey a deed of trust": The action of the trustee returning the title to the borrower once the loan is fully paid.
- The title company will issue a deed of reconveyance after the final mortgage payment.
Variants and Related Words
- Trust deed: A common synonym for "deed of trust." The terms are often used interchangeably.
- The trust deed was filed with the county recorder's office.
- Deed (n): A broader term for any written legal document that conveys an interest, right, or property.
- Mortgage (n): A more common two-party security instrument for a loan, often contrasted with a three-party deed of trust.
Synonyms
- Security deed: (Regional, e.g., in some U.S. states) Another term for a deed of trust.
- Trust indenture: A related but often more complex trust agreement, sometimes used in corporate finance.
Related Phrases
- Deed of trust with power of sale: Specifies that the trustee has the authority to sell the property without court proceedings if the borrower defaults.
- The deed of trust with power of sale allows for a non-judicial foreclosure.
Related Idioms
- This is a precise legal term and is not typically used in idiomatic expressions.
Noun
- a written instrument legally conveying property to a trustee often used to secure an obligation such as a mortgage or promissory note