Land records · Parcel maps · October 5, 2026
What Is a Deed of Trust? Three Parties, Plain English
What is a deed of trust? A recorded security document that ties a home loan to the property through a neutral trustee. How it differs from a mortgage.
What is a deed of trust? It is the document that secures a home loan in many states. Instead of the borrower pledging the property directly to the lender, as with a mortgage, the borrower conveys a limited interest to a neutral third party called the trustee, who holds it until the loan is paid. If the loan is paid off, the trustee releases it. If the borrower defaults, the trustee can usually sell the property without going to court. Despite the name, a deed of trust does not transfer ownership in the everyday sense; the borrower still owns, lives in, and pays taxes on the home. This page is general land-records background, not legal advice.
The three parties
- Trustor: the borrower, who signs the deed of trust and keeps ownership and possession.
- Beneficiary: the lender, who is owed the money and benefits from the security.
- Trustee: a neutral party, often a title company or attorney, who holds the power to release the property when the loan is paid or to sell it under the deed’s terms after a default.
A mortgage, by contrast, has only two parties, the borrower and the lender.
Deed of trust vs mortgage
| Deed of trust | Mortgage | |
|---|---|---|
| Parties | Borrower, lender, trustee | Borrower, lender |
| Typical foreclosure | Non-judicial trustee’s sale, where state law allows | Judicial, through the courts, in many states |
| When paid off | Trustee records a reconveyance or release | Lender records a satisfaction or release |
Which one you sign depends mostly on the state. California, Texas, Virginia, Colorado, and North Carolina are among the many states where deeds of trust are common. Some states use mortgages almost exclusively, and a few use both.
The promissory note
The deed of trust is not the loan itself. The promise to repay is a separate document called the promissory note, which states the amount, interest rate, and payment terms. The note usually stays with the lender and is not recorded. The deed of trust is what gets recorded, because it is the piece that ties the debt to the land and puts future buyers and lenders on notice.
What happens when the loan is paid
When the last payment clears, the lender tells the trustee to release the property. The trustee then signs a deed of reconveyance or a release, depending on the state, and it is recorded in the county records. Until that release is recorded, the old deed of trust can show up as an open lien in a title search. If you paid off a loan and never saw a release recorded, contact the lender or loan servicer; many states set deadlines for them to file it.
Finding a deed of trust
Deeds of trust are recorded with the county recorder or register of deeds, usually on the same day as the purchase deed. In the grantor-grantee index, the borrower appears as the grantor and the trustee or lender as the grantee. Look for:
- The recording date and document number.
- The original loan amount.
- The names of the trustee and beneficiary.
- The legal description and parcel number.
- Any later assignment, which shows the loan was transferred to a new lender, and any reconveyance.
Our guide to finding liens on a property covers how open deeds of trust appear alongside other liens.
Reading it next to the map
A deed of trust uses the same legal description as the deed, so it is a handy cross-check when you are matching a parcel on the county viewer from our county GIS map directory to the recorded documents. If the parcel number on the deed of trust does not match the parcel you are looking at, check for a lot split, a combination, or a renumbering.
What is a deed of trust FAQ
Is a deed of trust the same as a deed?
No. A deed transfers ownership. A deed of trust secures a loan against the property, and the borrower keeps ownership.
Who holds the deed of trust?
The original is recorded with the county and returned to the lender or its agent. The trustee holds the power to release or sell under its terms.
What is a deed of reconveyance?
The document a trustee records after a loan is paid in full, releasing the property from the deed of trust.
Which states use deeds of trust?
Many, including California, Texas, Virginia, Colorado, and North Carolina. Other states use mortgages, and some allow both.
Can a deed of trust be foreclosed without court?
In many states, yes. A deed of trust often includes a power of sale that lets the trustee hold a non-judicial sale after notice periods set by state law.