A deed of trust is usually a document that is developed by a title company that offers vital information regarding an agreement of payment on a property from a borrower to a lender. This document allows the borrower to hold the title of the property even though it isn't fully paid for. The lender shows the borrower that they trust they will repay them. However, the deed of trust will include any legal actions that will need to occur in case payment isn't made. In order to write a deed of trust it will need to include the most important information about the agreement between the two parties, the borrower and the lender.

Things You Will Need

  • Contract

  • Pen

  • Loan

The Steps

Step 1.

Begin with the title and date the deed is signed. Center the title which will be deed of trust. Double space down from the centered title and write what was used as security. For example, list an amount of other owned property such as a house that is offered to the lender in case payment is not made .

Step 2.

Create the second and third lines to the deed of trust that includes the name of the borrower and lender. Begin second sentence with borrower is and write the name of the borrower. Third line will have the lender's name, either company or person's name.

Step 3.

Continue with naming the trustee. The trustee is a third party that remains neutral. This is usually the title company which has the power of sale if the agreement of payment is not kept.

Step 4.

Write below the name of the trustee the amount owed for the property to the lender. The amount owed should also list the interest rate and the date of when the final payment should be made.

Step 5.

List the address of the property under the amount owed. Then conclude with provisions of the loan such as late fees and legal procedures in case borrower does not keep up their end of the agreement by not paying back the amount owed. Explain if there are any penalties such as extra fees that are expected in case the borrower pays off the note early or if there are any penalties for refinancing before a certain date.

Tip

Include in the ending of the deed of trust any provisions that would not allow the borrower to sell the property for a certain amount of years. Not all deeds of trust would have this since not all loans have this as part of the agreement.