DeedPro Blog

1 April 2017

Deed Preparation FAQ: Deed vs. Deed of Trust

As a leading deed preparation company, DeedPro understands the confusion between deeds and deeds of trust, also sometimes called trust deeds. Though both are legal documents that relate to real estate ownership, they are very different from one another. We aim to dispel any and all confusion today.

First things first: what is a deed?

A deed is a legal document that transfers from one person to another full ownership and title of a property. The deed is the legal document that proves the owner has title to the property in question. Most deeds simply contain two parties, the grantor and the grantee. The grantor is the person transferring title to the other person. The grantee is the person receiving the title. All deeds are not created equal, however. Different deed types contain different warrantees and guarantees.

What is a deed of trust?

Unlike most other deed types, a deed of trust does not transfer property between owners. Instead, it gives a lender a lien on a property. A deed of trust gives the lender the right to foreclose on the home if the loan is not repaid. Unlike other kinds of deeds that include just two parties, the grantor and the grantee, a deed of trust includes three parties: the trustor, the beneficiary, and the trustee. The borrower is the trustor. The beneficiary is the lender. The trustee is a title company or attorney that is given the authority to carry out the foreclosure if the borrower defaults on the loan.

DeedPro: Deed Preparation Experts

DeedPro is the largest deed preparation company in the United States. For 20 years, we have been preparing deeds that meet UPL requirements for all 50 states. We calculate all fees required to record a deed, as well as provide or prepare any state & county forms that may be required at time of recording with fast turnaround time. To learn more about our services, visit our homepage today!

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