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Simple English definitions for legal terms

trust deed

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A quick definition of trust deed:

A trust deed, also known as a deed of trust, is a way to borrow money for property renovations or other projects. The borrower gives the lender one or more promissory notes and transfers a real property interest to a third-party trustee as security. If the borrower fails to repay the loan, the trustee can take control of the property to correct the borrower's default. The trustee can sell the property without a court order, which benefits lenders because it is quicker and cheaper.

A more thorough explanation:

A trust deed, also known as a deed of trust, is a legal document used in some states, such as California and Massachusetts, to secure real estate transactions. It is an alternative to a mortgage.

When a borrower needs money to finance property renovations or other projects, they can get money from a lender by giving the lender one or more promissory notes. As security for the promissory notes, the borrower transfers a real property interest to a third-party trustee. This trustee can be a title company.

If the borrower defaults on the terms of the loan, the trustee may take full control of the property to correct the borrower's default. The trustee holds the property in trust for the use and benefit of the borrower. In some states, the trustee merely holds a lien on the property.

Trust deeds usually include a power-of-sale clause, which allows the trustee to conduct a non-judicial foreclosure. This means that the trustee can sell the property without first getting a court order. This benefits lenders because they can foreclose on the property much quicker and usually cheaper than having to get a court order, which can take years in some states.

In a typical home loan, the borrower is the person buying the home, the lender is a bank, and the trustee is a title company. The borrower makes monthly payments to the bank. If the borrower goes into default, the title company initiates a non-judicial foreclosure as the bank's agent.

For example, if a borrower takes out a trust deed to finance a home renovation project and fails to make payments, the trustee can sell the property to recover the money owed to the lender. This is done without going through the court system, which can save time and money for both the lender and the borrower.

trust declaration | trust fund

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true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
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@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
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