A deed of trust is similar to a mortgage in that it creates a lien against the property.
| • | The Trustor (property owner) deeds the property to a Trustee (neutral 3rd party) but retains possession. |
| • | Trustee holds the property on behalf of the Beneficiary (lender). |
| • | If the borrower (trustor) does not meet the terms of the promissory note, the trustee may sell the property to satisfy the note. |
| • | When the borrower pays off the note, the beneficiary notifies the trustee who issues a reconveyance deed. |
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