deed of trust

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Deed of trust


A contract for a bond. An indenture sets the terms of the bond; for example, it includes the coupon rate, the period until maturity, and whether the bond comes with any special features like convertibility or whether it is callable. All bonds must have an indenture. Indentures are usually summarized in a bond's prospectus.

Trust Deed

1. In real estate, an agreement in which the title to the property is held in a trust until the mortgage is paid. A trust deed is not given to the homeowner in order to provide an extra amount of security for the lender; the trustee for a trust deed does nothing except in the event of default, in which case the trustee sells the real estate.

2. An agreement stating the terms of a trust. A trust deed is most common when mutual funds are held in trust, and outlines the responsibilities and restrictions on the fund.

deed of trust

A security instrument used to grant rights in real property to a lender. It is used in some states; other states use mortgages to accomplish the same goal.With a deed of trust, title to the property is transferred to a trustee,who holds it in trust for the borrower's benefit until such time as the loan has been paid in full. At that time, the trustee will transfer legal title back to the borrower by way of a deed of reconveyance.If there is a default and foreclosure,it is the trustee who conveys the property to another.

References in periodicals archive ?
Where the holder of a deed of trust on the land only subordinates to a construction loan deed of trust, his deed of trust may be subordinated to any mechanics' liens that are filed and are prior to the construction loan deed of trust.
Both our insured deed of trust and the one it refinanced referred to the metes-and-bounds legal description, while the missed deed of trust referred to lot numbers 1 and 2 on the recorded subdivision map.
The company paid $149,672 to release the missed deed of trust.
We insured a first (refinancing) deed of trust for $425,000, against a new home on Lake Vista Drive in Bonsall, California.
We insured a first (refinancing) deed of trust for $98,000, against a home on Albion Lane in Longmont, Colorado.