deed of trust

deed of trust/ Sometimes called a trust deed

A three-party document conveying interest in property, almost always real estate, to a trustee. In many states, deeds of trust are used instead of mortgages. In those states, the trustee holds the deed in favor of the lender and then reconveys the title to the borrower when the loan is paid in full. American Banker Glossary

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See: indenture

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deed of trust ˌdeed of ˈtrust noun deeds of trust _PLURALFORM [countable] LAW PROPERTY FINANCE

in the US, a change of ownership of a property to a trustee as security in case the owner of the property fails to do something such as repay a loan:

• A notary forged deeds of trust against people's houses and got away with $1.8 million.

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deed of trust UK US noun [C] (plural deeds of trust)

► US LAW a legal agreement in which someone borrowing money allows another person called a trustee to be the owner of their property or assets until they pay back the loan. If the money is not paid back, the trustee can sell the property: »

The corporation had loaned him $1 million through a second deed of trust on the property.

► (also trust deed) a legal document that creates a trust (= an organization which controls property or money for another person): »

We bought it through a deed of trust, in which my mother has 60 shares, and the four of us have 10 each.