A deed of trust is part of the paperwork for a mortgage loan. Whether for home, property or business, the deed of trust is the security for your loan and the document that is public record. The deed of trust has three parties listed: the borrower or trustor, the trustee or the one who holds legal title to the property and the beneficiary or the lender.

The deed of trust also contains information pertinent to the sale such as the original loan amount, mortgage requirements, a legal description of the property and the names of the parties involved. The main difference between the mortgage and the deed of trust is that the mortgage is specific to the buyers and the deed of trust includes the name of an independent third party. This third party is the trustee who holds the power of sale in the event of default along with other duties when the borrower pays the trust in full. Use a deed of trust to:

1. Identify a third party, independent of the borrower and lender in the sale of property.

2. List the names of all parties involved in the transaction.

3. Maintain an appropriate legal description of the property through a deed of trust.

Action Steps
The best contacts and resources to help you get it done

Find deed of trust experts for deed of trust advice

Since a deed of trust is part of the mortgage loan process, you will see it and sign it along with all other closing documents. Getting the right information from legal experts in the sale or transfer of property is important for understanding how the deed of trust works and what you need to know before signing.

I recommend: Use AVVO by filling in your city and state, then typing "Real Estate" in the legal topic field to find trust experts near you. Try AttorneyPages.com by clicking on "Real Estate" for the practice area or you can type in your ZIP code.

Create deed of trust documents with online tools and resources

Most deed of trust documents come from your title company, lending institution, attorney or through your Realtor. For those selling property by owner or handling their own transactions, look for deed of trust documents available online.

I recommend: Both Lawdepot.com and Formsguru.com have free deed of trust forms available for users.

Work with a deed of trust expert for deed of trust management

Getting the right advice before major life decisions is important, especially when those decisions involve the purchase or sale of real estate. The right real estate or transactional attorney helps buyers or sellers have the appropriate documentation ready for the closing.

I recommend: Akerman Senterfitt, a national law firm, and global law firm Arnold & Porter, have large real estate divisions to meet all your real estate transaction needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be sure to check with your registrar of deeds when doing buy owner types of transactions. Make sure you have all the right deed of trust information before signing or filing.