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In the North Carolina real estate show, the focus is on the definition of a deed of trust, which is a security instrument. Legally, it allows a borrower to pledge real estate as collateral for a loan, meaning they agree to repay borrowed money or face foreclosure. In simpler terms, if someone borrows money to purchase a house and fails to repay, the lender has the right to take back the property. This concept, often summarized as “if you don’t pay, you don’t stay,” underscores that homeownership is contingent upon making payments. Additionally, it's important to distinguish between a deed of trust and a deed; the former relates to securing a loan, while the latter signifies legal ownership of a property.
