Deed Of Trust (Noun)
Meaning
A written instrument legally conveying property to a trustee often used to secure an obligation such as a mortgage or promissory note.
Classification
Nouns denoting communicative processes and contents.
Examples
- The lender required the borrower to sign a deed of trust as collateral for the loan, giving the lender the right to sell the property if the borrower defaulted.
- When purchasing the house, the couple had to sign a deed of trust to secure the mortgage with the bank.
- In the event of default, the deed of trust allows the lender to take possession of the property and sell it to recover the outstanding balance.
- The deed of trust was recorded at the county courthouse to provide public notice of the lien on the property.
- By signing the deed of trust, the homeowner gave the lender a security interest in the property, allowing the lender to foreclose if payments were not made.