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 Utah, a deed of trust is a common instrument used in real estate transactions to secure a loan for the purchase of property. It involves three parties: the borrower (trustor), the lender (beneficiary), and the trustee, who is typically a title company. The borrower transfers the title of the property to the trustee as collateral for the loan, with the condition that the trustee will return the title to the borrower upon full repayment of the loan. If the borrower defaults on the loan, the trustee has the authority to sell the property through a nonjudicial foreclosure process, which does not require court intervention. This process is generally faster and less costly than judicial foreclosure, which is used in mortgage states. Utah's regulations regarding deeds of trust and the foreclosure process are codified in the Utah Code, which provides specific procedures and requirements for these transactions and any subsequent actions in the event of default.