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In this segment of the North Carolina real estate show, the focus is on the definition of a deed of trust. Legally, a deed of trust is a security instrument where a borrower pledges real estate as collateral for a promissory note. In simpler terms, it means that when someone borrows money to purchase a house, they agree that if they fail to make payments, the lender can foreclose on the property. The host emphasizes that if you're not paying, you won't keep the house, highlighting the lender's right to reclaim the asset. It’s also clarified that a deed of trust is distinct from a deed, which signifies legal title to the property.
