Free Deed of Trust

Free Deed of Trust

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Deed of Trust

  1. Answer a few simple questions
  2. Email, download or print instantly
  3. Just takes 5 minutes

Deed of Trust

Create your Deed of Trust

Create your Deed of Trust

Connecticut

Connecticut

In Connecticut, you must use a Mortgage Agreement instead of a Deed of Trust. Please use our Mortgage Agreement contract.
Frequently Asked Questions

What is the difference between a Mortgage Agreement and a Deed of Trust?Essentially both documents serve the same purpose; the borrower is using the property as security to acquire the lender’s loan. A mortgage creates a lien on the Mortgagor’s property and that serves as security for the loan. The mortgage is between the borrower and the lender. While in a Deed of Trust, a lien still exists and serves the same function; however, a third party called the Trustee is also involved. The neutral third party will hold the title temporarily for the Beneficiary (the lender), until the loan is fully paid. Some common Trustees are attorneys or title companies.

In addition, if the borrower defaults, the foreclosure differs. For mortgages, the lender needs to go through judicial foreclosure process which takes longer. However, some states do have non judicial foreclosures available even for mortgages. In the case of Deed of Trust, the lender can bypass the judicial process and utilize the power of sale to sell the property if the borrower defaults.
Which states use a Deed of Trust and which states use a Mortgage Agreement?The following states use Deed of Trusts: Idaho and Washington, D.C.

The following states use Mortgage Agreements: Connecticut, Delaware, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, Pennsylvania, and South Carolina.

The following states may use either Mortgage Agreements or Deed of Trusts: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Hawaii, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New York, North Carolina, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.

Deed of Trust

What is a Deed of Trust?

A Deed of Trust, also known as a trust deed, is used to secure a loan for real property (immovable property like land or a house). When using a trust deed, legal title to a property is transferred from the lender to a neutral trustee until the borrower pays off the loan. Once repayment is complete, the legal title transfers from the trustee to the borrower, and the transaction is complete.

What is the difference between a Mortgage Agreement and a Deed of Trust?

One of the main differences between a Mortgage Agreement and a Deed of Trust is the parties who are involved in the transaction.

A Mortgage Agreement has two parties:

  • The borrower: the party receiving a loan to pay off their house, condo, apartment, etc.
  • The lender: the party loaning money to the borrower

A Deed of Trust has three parties:

  • The trustor (borrower): the party paying back loaned money for ownership of the real property
  • The trustee: the neutral party (usually attorneys or title companies) holding the land title until the borrower pays off the loan
  • The beneficiary (lender): the party that loaned money to the borrower

A trust deed can also include a guarantor, a person who is jointly responsible for the loan repayment if the trustor defaults. This provides extra security for the lender because they'll have another avenue to collect on the loan if needed.

Another difference is that a Deed of Trust always has a Power of Sale clause that grants the beneficiary the right to foreclose on the property should the trustor default. In this event, the trustee will conduct a non-judicial foreclosure (a sale of the property without the requirement of a court order).

Which states use a Deed of Trust?

Some states require the use of a specific security instrument, meaning a Deed of Trust or a Mortgage Agreement.

Idaho and Washington, D.C. require the use of a trust deed.

Connecticut, Delaware, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, Pennsylvania, and South Carolina require the use of a Mortgage Agreement.

The rest of the states may use one or the other.

Who can I use as a trustee in a Deed of Trust?

In a Deed of Trust, the trustee is a neutral third-party who holds the legal title of the property as security for the loan until the lender's money is repaid or the borrower defaults.

Trustees are sometimes referred to as escrow agents. Escrow is the process of a third-party securing a transaction (in the case of the sale of real estate, they are holding the title of the property until the loan agreement is satisfied or dissolved). Usually the escrow agent (trustee) is an attorney or a title company. A title company ensures that the title to real estate is legitimate, and they insure the property. Title insurance shields the lender and borrower from potential lawsuits that arise from disputes over the title.

How do I fill out a Deed of Trust?

To fill out this trust deed, you'll need the following information:

  • Party information: names and addresses of the trustor(s), trustee(s), beneficiary(ies), and guarantor(s) (if applicable)
  • Property details: full address of the property and its legal description (which can be obtained from the County Recorder's Office)
  • Payment details: schedule, interest rate, maturity date, and prepayment amount (if applicable)

Related Forms:

  • Warranty Deed: used to transfer a property title to another individual with warranties on the title, meaning the individual has a clear title to the property and the right to sell it
  • Quitclaim Deed: used to transfer a property title to another person without any warranties
  • Deed of Reconveyance: a deed that transfers the legal title of property from a trustee to a trustor after a secured debt has been fully paid
  • Mortgage Agreement: a contract that secures a loan from a lender to a borrower in the purchase of real estate
  • Loan Agreement: sets out the terms and obligations of a loan between a borrower and a lender
  • Real Estate Purchase Agreement: a document that catalogs the purchase and sale of real estate
  • Promissory Note: an enforceable promise that commits a borrower to pay back a loan to a lender

Frequently Asked Questions:

Deed of Trust FAQ
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