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In a seller financed real estate deal with a deed of trust, three key documents are involved: the deed, the promissory note, and the deed of trust. The deed transfers ownership, the note outlines loan terms, and the deed of trust acts as a lien on the property until the loan is paid in full. Only the deed and deed of trust are recorded, not the promissory note. The deed of trust involves three parties: the lender, borrower, and trustee (usually a title company or attorney).
