Deed Of Trust

A conveyance (of real estate title) by a borrower to a trustee as collateral security for the payment of a debt with the condition that the trustee must reconvey the title to the borrower upon satisfaction of the debt or sell the collateral real estate and pay the debt to the lender in the event of a default.

A deed to real property used in some states which serves the same purpose as a mortgage but involves three parties rather than two. The third party is a trustee who holds title to the real estate for the benefit of the lender. The borrower is referred to as the trustor and the lender as the beneficiary under a deed of trust. The trustee has the power to sell the property and pay the debt in the event of a deed of reconveyance.