What Is a Deed of Trust?
A Deed of Trust is a security instrument used in California real estate financing. Unlike a traditional mortgage, it involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee) who holds legal title to the property as security for the loan. It is the standard instrument used by lenders in California in place of a mortgage.
When to Record a Deed of Trust
A Deed of Trust must be recorded when real property is used as collateral for a loan. This includes purchase money loans from lenders, seller-carried financing, hard money loans, and private loans secured by real property. Recording the Deed of Trust establishes the lender's lien priority against the property.
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- Lenders and mortgage companies securing real estate loans
- Real estate attorneys drafting private or seller-carried financing arrangements
- Title and escrow companies processing purchase transactions
- Real estate investors using hard money or private financing
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Deed of Trust Recording FAQ
What is the difference between a mortgage and a Deed of Trust in California?
California primarily uses Deeds of Trust rather than mortgages. The key difference is the involvement of a trustee who holds legal title during the loan term. Deeds of Trust allow for non-judicial foreclosure (trustee's sale), which is faster than judicial mortgage foreclosure.
Does a Deed of Trust need to be notarized before recording?
Yes. A Deed of Trust must be notarized before it can be recorded with the county recorder's office. eFileRecorder submits your notarized document electronically.
How does a Deed of Trust get released once the loan is paid off?
Once the loan is paid, the beneficiary instructs the trustee to execute a Full Reconveyance, which releases the lien and returns full title to the borrower. eFileRecorder also handles Full Reconveyance recording.
How long does Deed of Trust recording take?
Most Deeds of Trust submitted through eFileRecorder are recorded within 24-48 business hours.