Posted by dealmaker on February 13, 2006 at 11:03:20:
I think you’re confusing a D of T and a WARRANTY DEED. A WD transfers TITLE of a ppty from a SELLER to a BUYER. A D of T is SIGNED BY THE BUYER in consideration of the NOTE (loan). The D of T puts the TKTLE to the ppty IN TRUST of a THIRD PARTY which is the TRUSTEE.
The trustee serves ONLY TWO FUNCTIONS. To provide a FULL RELEASE when the NOTE has been paid in full, or to conduct a TRUSTEE’S SALE (forclosure) in the event of default.
In your example is you substitute WARRANTY DEED for your words deed of trust, the answer is YES. In most WDs the “consideration” is usually “ten dollars and otheer consideration, including the execution of a PROMISSORY NOTE in the amount of …”.
That’s how it works.
dealmaker