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A deed of trust is a security instrument where a borrower pledges real estate as collateral for a loan, ensuring repayment to the lender. Essentially, if the borrower fails to repay the borrowed money for purchasing a house, the lender has the right to foreclose and reclaim the property. It emphasizes that ownership is contingent upon making payments; if the borrower doesn't pay, they risk losing the house. It's important to distinguish between a deed of trust and a deed: while a deed represents legal title to the property, a deed of trust secures the loan itself.