What Is Deed of Trust?
A security instrument used in Texas real estate financing where the borrower conveys title to a trustee who holds it as security for a debt. If the borrower defaults, the trustee can conduct a non-judicial foreclosure sale to satisfy the debt.
Deed of Trust across 2 exams
Deed of Trust appears on the following exams. Each defines it in the context candidates are tested on:
- TX Broker
- A security instrument used in Texas real estate financing where the borrower conveys title to a trustee who holds it as security for a debt. If the borrower defaults, the trustee can conduct a non-judicial foreclosure sale to satisfy the debt.
- CA Broker
- A security instrument used in California in which a borrower conveys title to a trustee to secure repayment of a loan, allowing non-judicial foreclosure if the borrower defaults.