Deed of Trust

A written instrument that, when duly recorded in the appropriate county records, creates a lien against a parcel of real property, which lien secures consensual debt. By signing a deed of trust, the debtor (borrower) transfers legal ownership of the property to a trustee, to be held in trust, for the benefit of the creditor (lender). The trustee re-conveys legal ownership to the debtor when the debt is paid-in-full; or, if the debtor defaults, then the trustee sells the property on behalf of the creditor. In Colorado, the trustee is a public office. Compare mortgage. See lien.

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