Asked by: Kirilkareal estate real estate renting and leasing
What is the purpose of a trustee on a deed of trust?
Last Updated: 27th March, 2020
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Also question is, does a deed of trust have to have a trustee?
If you use a deed of trust, either to purchase real estate or to borrow money using your property as collateral, a proper trustee must be part of the transaction. Most states that commonly use deeds of trust instead of mortgages have laws regarding the qualifications of the trustee.
Also, what is a deed of trustee? A trustee deed, also called a trust deed or deed of trust, is an arrangement used in place of a mortgage deed in states like California that allow nonjudicial foreclosure, that is, foreclosure without going to court. An ordinary mortgage deed documents a transaction between two parties, a lender and a borrower.
Simply so, what is the purpose of a trust deed?
In real estate in the United States, a deed of trust or trust deed is a legal instrument which is used to create a security interest in real property wherein legal title in real property is transferred to a trustee, which holds it as security for a loan (debt) between a borrower and lender.
Who keeps the original deed of trust?
As you stated in your question, it is recorded among the land records, and your lender keeps the original. When you pay off the loan, the lender will return the deed of trust with the promissory note.