By State

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Georgia
• Idaho
• Iowa
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Mexico
• New York
• North Carolina
• North Dakota
• Oklahoma
• Oregon
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

 

What is a Deed of Trust?

A deed of trust (sometimes called a “trust deed”) is collateral for the promissory note. Instead of the borrower holding full title to the property immediately, the trustee holds it “in trust” until the loan is fully paid off. If the borrower falls behind and defaults on the loan, the trustee can step in, foreclose on the property, and sell it at auction to cover the outstanding debt.

One key advantage of a deed of trust for lenders is that it often allows foreclosure without going through a lengthy court process (known as judicial foreclosure). Instead, a non-judicial foreclosure can save months and significant legal expenses. Where permitted, deeds of trust are often preferred over traditional mortgages.

Today, deeds of trust are recognized in thirty-seven (37) states across the U.S.

 

Who Can Act as the Trustee?

The trustee must be a neutral third party and may need to meet specific qualifications depending on the state. Common examples of trustees include:

• Title insurance companies
• Attorneys
• Financial institutions (such as banks or credit unions)
• LLCs or other legal entities

In many cases, the lender selects the trustee. However, depending on the agreement, the borrower and lender may jointly choose who will serve as the trustee.

 

Deed of Trust vs. Mortgage: What’s the Difference?

While both a mortgage and a deed of trust secure a home loan, there are a few key differences:

Foreclosure Process:

• With a mortgage, the lender must typically sue the borrower in court after a default (judicial foreclosure), which can be slow and costly.
• With a deed of trust, if the borrower defaults, the trustee can proceed with foreclosure directly, often without court involvement (non-judicial foreclosure).

Number of Parties:

• A mortgage involves two parties — the borrower and the lender.
• A deed of trust involves three parties — the borrower, the lender, and the trustee.

 

Power of Sale Clause

Most deeds of trust include a provision known as the power of sale clause. This clause grants the trustee the authority to sell the property directly if the borrower defaults, without court approval. States that allow deeds of trust generally allow for this type of non-judicial foreclosure, though there are some exceptions, so check local laws.

 

How to File a Deed of Trust (Step-by-Step)

1. Obtain the Correct Deed of Trust Form

Use the Deed of Trust form provided, or make sure to use one that complies with your state’s real estate laws.

 

2. Fill Out the Deed of Trust

Follow the prompts and complete all necessary sections, typically including:

• Borrower’s (Trustor’s) full legal name and address
• Lender’s (Beneficiary’s) full legal name and address
• Trustee’s full legal name and address
• Loan amount (principal amount)
  
• Legal description of the property (found on the property’s current deed or tax statement — not just the street address)
• Terms of the promissory note (interest rate, payment schedule, maturity date)
• Default and foreclosure provisions

 

3. Sign the Deed of Trust

Follow your state’s signing requirements carefully:

• Must be signed by the borrower(s) (the homeowner)
• A licensed notary public must notarize the signature
• In some states, witnesses may also be required (check with your local county recorder to confirm)

 

4. Record the Deed of Trust

Take the completed and notarized Deed of Trust to the county recorder’s or clerk’s office where the property is located.

• Pay the recording fee (usually ranges from $30–$100, depending on the county)
• Obtain a certified copy for your records after recording.
  Once recorded, the Deed of Trust becomes part of the official public record, and the lender’s lien against the property is formally established.

 

Deed of Trust Laws

STATE	PERMITTED?	STATUTES
Alabama	Yes	§§ 35-10-11 to 35-10-16, § 35-10-3
Alaska	Yes	§§ 34.20.070 to 34.20.135
Arizona	Yes	§§ 33-801 to 33-821
Arkansas	Yes	§§ 18-49-101 to 18-49-106, § 18-50-103
California	Yes	§§ 2920 – 2944.10
Colorado	Yes	Article 38 & Article 39
Connecticut	No	N/A
Delaware	No	N/A
Florida	No	N/A
Georgia	Yes	§§ 44-14-120 to 44-14-126, § 44-5-33
Hawaii	Yes	§§ 506-1 to 506-10
Idaho	Yes	§§ 45-1502 to 45-1515
Illinois	No	N/A
Indiana	No	N/A
Iowa	Yes	Ch. 654
Kansas	No	N/A
Kentucky	No	N/A
Louisiana	No	N/A
Maine	Yes	§ 6203-A
Maryland	Yes	§§ 7-101 to 7-113
Massachusetts	Yes	§§ 244:1 to 244:41
Michigan	Yes	§§ 600.3201 to 600.3285
Minnesota	Yes	§§ 582.01 to 582.32
Mississippi	Yes	§§ 89-1-53 to § 89-1-59, § 89-1-63
Missouri	Yes	§§ 443.005 to 443.454
Montana	Yes	§§ 71-1-201 to 71-1-235
Nebraska	Yes	§§ 76-1001 to 76-1018
Nevada	Yes	§§ 107.015 to 107.560
New Hampshire	Yes	§§ 479.22 to 479.27-a
New Jersey	No	N/A
New Mexico	Yes	§§ 48-10-1 to 48-10-21
New York	No	N/A
North Carolina	Yes	§§ 45-4 to 45-107
North Dakota	No	N/A
Ohio	No	N/A
Oklahoma	Yes	§§ 46.40 to 46.49
Oregon	Yes	§§ 86.705 to 86.815
Pennsylvania	No	N/A
Rhode Island	Yes	§§ 34-27-1 to 34-27-5
South Carolina	Yes	§§ 29-3-10 to 29-3-800
South Dakota	Yes	§§ 21-48-1 to 21-4-26
Tennessee	Yes	§§ 35-5-101 to 35-5-116
Texas	Yes	§§ 51.0001 to 51.016
Utah	Yes	§§ 57-1-1 to 57-1-46
Vermont	Yes	§§ 4691 to 4670
Virginia	Yes	§ 55.1-316 to § 55.1-345
Washington	Yes	§§ 61.24.005 to 61.24.190
West Virginia	Yes	§§ 38-1-1 to 38-1-17
Wisconsin	No	N/A
Wyoming	Yes	Title 34, Ch. 3 & Ch. 4