Real Estate Principles

Ninth Edition

Real Estate:
An Introduction to the Profession
Ninth Edition

By Charles J. Jacobus
South-Western Publishing©2002

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 Chapter 10
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Deed of Trust

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 Deed of Trust Parties

• Borrower = Trustor
• Lender = Lender
• Neutral Third Party = Trustee

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Comparison of a Mortgage
with a Deed of Trust

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 Comparison of a Mortgage
with a Deed of Trust (continued)

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Sample Deed of Trust

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Sample Deed of Trust (continued)

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Sample Deed of Trust (continued)

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Request for Full Reconveyance

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Full Reconveyance

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 Deed of Trust Advantages
• Upon default, Lender can possession of property &
collect rents
• Time between default & foreclosure is short
• Power of sale provision
• Trustee already has title
• Usually no statutory redemption

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 Comparison of a Mortgage,
Deed of Trust and Land Contract

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 Key Terms
• Assignment of rents • Naked title
• Beneficiary • Reconveyance
• Deed of trust • Trustee
• Trustor

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