What Is a Deed of Trust? How Does It Work?

A Deed of Trust is an important legal agreement used in real estate transactions. It's a document that outlines the terms and conditions of a loan between a lender and borrower, and it grants the lender certain rights over the property being purchased. This article will explain what a Deed of Trust is, how it works, and why it's necessary for real estate transactions.

At its core, a Deed of Trust is an agreement between two parties; one party (the “borrower”) receiving money from another party (the “lender”). The borrower gives up their legal right to the property in exchange for money from the lender.

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