A deed of trust is a legal document that transfers ownership of real property (real estate) to a trustee until the person or entity buying the real property repays a loan for the purchase of the real property. A deed of trust is similar to a mortgage—some states use a mortgage and other states use a deed of trust.

In a deed of trust transaction a lender (the bank) gives a borrower (who is purchasing the real property) money to pay the seller, and the borrower gives the lender one or more promissory notes for repayment of the loan. As security for the promissory notes, the borrower transfers the ownership interest (title) in the real property to a trustee—often a title company—to hold until the borrower repays the lender.

If the borrower fails to timely make payments and defaults on the loan, the property generally may be sold without the lender using or going through the court system. This is known as nonjudicial foreclosure and is usually less time-consuming and less expensive for the lender.

A deed of trust is also known as a trust deed, a trust indenture, an indemnity mortgage, or a common-law mortgage.

In Georgia, the primary instrument used to secure a loan for the purchase of real estate is not a deed of trust, but rather a security deed, also known as a mortgage. While a deed of trust involves three parties—the borrower, the lender, and the trustee—Georgia's security deed typically involves only two parties: the borrower and the lender. The borrower conveys the legal title of the property to the lender as security for the loan, but retains the equitable title and the right to possess and use the property. Upon full repayment of the loan, the lender is required to reconvey the legal title back to the borrower. If the borrower defaults on the loan, Georgia allows for nonjudicial foreclosure, meaning the lender can foreclose on the property without court intervention, provided that the process complies with state law and the terms of the security deed. It's important to note that while Georgia primarily uses security deeds, the terms 'mortgage' and 'security deed' are often used interchangeably in common parlance.