Putting it in the most simple terms, a Deed of Trust is a legal document used in real estate transactions to secure a loan. Remember, it involves three parties— the borrower, the lender, and a trustee. First, the borrower transfers the title of the property to the trustee and the latter holds it as security for the loan. If the borrower repays the loan, as expected, the trustee returns the title to the borrower. However, if the borrower defaults, the trustee holds the right to and may sell the property on behalf of the lender. Yes, you can say that it’s similar to a mortgage but uses a third party.