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In this North Carolina real estate tutorial, the definition of a deed of trust is explained as a security instrument where a borrower pledges real estate as collateral for a loan, represented by a promissory note. Essentially, it means that if the borrower fails to repay the loan, the lender can foreclose on the property. The summary emphasizes that consistent payments are necessary to retain ownership of the home, encapsulated in the phrase, "if you don’t pay, you don’t stay." Additionally, it clarifies the distinction between a deed of trust and a deed; the latter refers to the legal title of the property.
