Resources > Glossary > Deed of Trust

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Deed of Trust

Function: noun

The Deed of Trust is referred to as the "Mortgage" in many states. Every loan package must have a Deed of Trust or Mortgage. In my personal experience, I have seen them vary in length from two pages to twenty-two pages in length.

Definition 1:
The Deed of Trust is the security instrument in a loan. It gives the lender a claim against the borrower'(s) home if they default on payment. This document is often initialed on all pages near the bottom of each page. The Deed of Trust is used to secure the payment of a loan. Many states use a similar document called a Mortgage in its place. All loans have either a Deed of Trust or Mortgage document.

Definition 2:
There are variations in the types of Deeds of Trust including a Short Form Deed of Trust. The Deed of Trust is always notarized and recorded with the county recorder. County recorders are very picky as to the quality of the notary seal on the document or certificate. They will sometimes reject a document if there is a smudge or any faintness in the notary seal. Please notee that you cannot deduct any mortgage interest for tax purposes unless your property is secured by a deed of trust. That means that the deed of trust must be recorded in land records.