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- So if youre closing a seller financed real estate deal with a deed of trust, there are three key documents that are involved in this process. There is the deed, there is the promissory note, and theres the deed of trust. The deed is the document that essentially transfers ownership from the seller to the buyer. And the note is like the legal instrument that just states all the terms of what the loan are, the interest rate, the loan amount, the payments, all that information. And then the deed of trust is the document that actually gets recorded at the county level and it acts as a lien on the property until that loan is paid in full. So the deed and the deed of trust get recorded, but the promissory note does not. And the way a deed of trust works, is theres three parties involved. There is the lender, and there is the borrower, and then theres a third party called a trustee. And a trustee is usually designated as like a title company, or an attorney, or sometimes even a loan se
