Deed of Trust
The Texas security instrument that pledges real property for a loan and lets a trustee sell it non-judicially if the borrower defaults.
A deed of trust is the security instrument Texas uses instead of a traditional mortgage. The borrower keeps title and signs a deed of trust that conveys a power of sale to a neutral third party, the trustee, to hold for the lender as security for the debt. The promissory note creates the debt; the deed of trust secures it.
Because the deed of trust contains a power of sale, default lets the trustee conduct a non-judicial foreclosure without a lawsuit, following the notice and posting rules of the Texas Property Code. This is the key practical difference from states that require judicial foreclosure of a mortgage.
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- Trustee (Deed of Trust)
The neutral third party named in a Texas deed of trust who holds the power of sale and conducts a non-judicial foreclosure if the borrower defaults.
- Non-Judicial Foreclosure
Foreclosure conducted by the trustee under a deed of trust's power of sale, without a court action, on the first Tuesday of the month in Texas.
- Promissory Note
The borrower's written promise to repay a debt, which is the instrument that actually creates the obligation.
- Mortgage
A security instrument that pledges real property as collateral for a debt. In Texas, lenders use a deed of trust to play this role.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.