What is a deed of trust?
A deed of trust is the document that secures a home loan in many states. The borrower transfers legal title to a neutral trustee, who holds it for the lender until the loan is paid off. If the borrower defaults, the trustee can sell the home at a trustee sale without going to court.
Updated November 2026. A plain-language definition, not legal advice.
How it works
A deed of trust has three parties: the borrower, the lender (called the beneficiary) and the trustee, often a title or trustee company. A mortgage has only two: the borrower and the lender.
The power of sale clause is what makes non-judicial foreclosure possible. When the loan is paid off, the trustee records a reconveyance that clears the deed of trust from the title.
How it differs by state
Foreclosure rules are set by each state. Here is how it works in the three states we cover most closely.
Nevada
Non-judicial
Deeds of trust are governed by NRS Chapter 107, which covers trustees, notices of default and the trustee's power of sale.
Foreclosure in NevadaUtah
Non-judicial
Utah's trustee sale rules for deeds of trust start at Utah Code § 57-1-24.
Foreclosure in UtahTexas
Non-judicial
The Texas Property Code treats a deed of trust as a security instrument, and Chapter 51 sets the rules for a sale under its power of sale.
Foreclosure in TexasWhat to watch
A home can carry more than one deed of trust. A foreclosure by the first lender usually wipes out later ones, which is why second lenders sometimes agree to short sales.
If a paid-off loan still shows on title, ask the trustee for the recorded reconveyance.
Questions people ask
What is a deed of trust?
A deed of trust is the document that secures a home loan in many states. The borrower transfers legal title to a neutral trustee, who holds it for the lender until the loan is paid off. If the borrower defaults, the trustee can sell the home at a trustee sale without going to court.
What is the difference between a mortgage and a deed of trust?
Both secure a home loan. A mortgage involves the borrower and the lender and usually needs a court case to foreclose. A deed of trust adds a neutral trustee who can sell the home at a trustee sale without court if the borrower defaults.
Related terms
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