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Why would someone use a deed of trust?

Deeds of trust are used in financed real estate transactions: that is, when someone borrows money to buy real estate. During such a transaction, a lender gives the borrower money in exchange for one or more promissory notes linked to a deed of trust.

What is the difference between a deed of trust and a Grant Deed?

A Grant Deed is an instrument that reflects a change in ownership of real property. A Deed of Trust is an instrument that secures a debt to real property.

What is the main purpose of a Grant Deed?

Grant Deeds are used to transfer title of real property. This is done at the time of purchase and can be later recorded to add or remove individuals names after purchase. This is known as the title document.

What are the disadvantages of a Grant Deed?

☞ No Safeguards Against Undisclosed Defects: A grant deed typically does not include any protection for the grantee against defects in the property that the grantor did not disclose. The grantee may be responsible for any liens or encumbrances on the property that the grantor did not disclose.

What is the difference between a grant deed and a deed of trust?

With a grant deed, the grantor, or seller, transfers his ownership in the property to the grantee, or buyer, guaranteeing that he actually owns the property. This provides protection for the grantee, or buyer, because it ensures she is getting what she is buying, and a title company has the ability to insure her title.

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