Deed of Trust Template, Free Download 2026

This Deed of Trust (the "Deed of Trust") is made and executed by [____________] (the "Trustor" or "Borrower"), whose address is [____________], to [____________] (the "Trustee"), whose address is [____________], for the benefit of [____________] (the "Beneficiary" or "Lender"), whose address is [____________]. Trustor hereby irrevocably grants, transfers, and assigns to Trustee, IN TRUST, WITH POWER OF SALE, the Property described herein, for the purpose of securing the obligations set forth in Article III.

Trustee accepts the trust created hereby and agrees to perform the duties of Trustee as set forth in this Deed of Trust and as required by applicable law. Trustee shall act in a fiduciary capacity and shall exercise the powers granted herein in a commercially reasonable manner. Beneficiary may, at any time and without cause, substitute a successor Trustee by recording a substitution of trustee in the official records of the county in which the Property is located.

If Trustor consists of more than one person or entity, each such person or entity shall be jointly and severally liable for all obligations secured by this Deed of Trust. All references to Trustor herein shall include all such persons and entities collectively and individually, together with their respective heirs, executors, administrators, successors, and assigns.

Trustor hereby grants and conveys to Trustee, in trust, the following described real property situated in the County of [____________], State of [____________] (the "Property"): [INSERT FULL LEGAL DESCRIPTION]. TOGETHER WITH all buildings, improvements, and fixtures now or hereafter erected on the Property; all easements, appurtenances, and water and mineral rights; all rents, royalties, issues, profits, and income of the Property; and all proceeds of the conversion, voluntary or involuntary, of any of the foregoing into cash or liquidated claims.

The Property also includes all equipment, apparatus, and fixtures of every kind now or hereafter attached to or used in connection with the Property, including heating, air conditioning, plumbing, ventilating, electrical, lighting, and fire protection equipment, and all replacements and additions thereto. All of the foregoing, together with the Property, are referred to herein as the "Trust Property." Trustor warrants that Trustor is the lawful owner of the Trust Property and has the right to grant and convey the same.

This Deed of Trust is given to secure the following obligations (collectively, the "Secured Obligations"): (a) the payment of the indebtedness evidenced by that certain Promissory Note of even date herewith in the principal amount of [$__________] (the "Note"), executed by Trustor in favor of Beneficiary, including all extensions, modifications, and renewals thereof; (b) the performance of each and every obligation, covenant, and agreement of Trustor contained in this Deed of Trust, the Note, and any other Loan Documents; and (c) all future advances and expenditures made by Beneficiary under the terms of this Deed of Trust or applicable law.

The lien of this Deed of Trust shall secure not only the existing indebtedness described above, but also any and all future advances, whether obligatory or optional, made by Beneficiary to or for the benefit of Trustor within twenty (20) years from the date hereof, plus interest thereon, to the maximum amount permitted by applicable law. The total amount of indebtedness secured hereby, exclusive of interest, shall not exceed [$__________] at any one time.

Trustor shall pay the principal and interest on the Secured Obligations as and when due in accordance with the terms of the Note. All payments shall be applied first to accrued and unpaid interest, then to the outstanding principal balance, and then to any other amounts due under the Loan Documents, unless Beneficiary elects a different order of application. Trustor shall make all payments at the address specified by Beneficiary or at such other place as Beneficiary may designate in writing.

If any payment due under the Note is not received by Beneficiary within [____] days after its due date, Trustor shall pay a late charge of [____]% of the overdue amount or [$__________], whichever is [greater / lesser], to compensate Beneficiary for the additional administrative costs of processing delinquent payments. The imposition of a late charge shall not constitute a waiver of Beneficiary's right to declare a default under this Deed of Trust or to exercise any other remedy available hereunder or at law.

Trustor shall maintain hazard insurance on the improvements situated on the Trust Property in an amount not less than the full replacement cost thereof, with a loss payable clause naming Beneficiary as mortgagee and first loss payee. Such insurance shall be issued by an insurer licensed in the State of [____________] with a financial strength rating of not less than A-VII by A.M. Best Company. Trustor shall deliver certificates of insurance and renewal policies to Beneficiary not fewer than thirty (30) days prior to the expiration of any existing policy.

Trustor shall pay all real property taxes, general and special assessments, ground rents, and other charges levied or assessed against the Trust Property before delinquency and shall furnish Beneficiary with evidence of such payments upon request. If Trustor fails to make any payment required under this Article, Beneficiary may, but shall not be obligated to, make such payment on Trustor's behalf, and any amounts so advanced shall be added to the Secured Obligations, shall bear interest at the default rate specified in the Note, and shall be immediately due and payable.

Beneficiary may require Trustor to establish and maintain an escrow account (an "Impound Account") with Beneficiary for the payment of property taxes, insurance premiums, and other recurring charges. Trustor shall deposit with Beneficiary, on each installment payment date, one-twelfth (1/12) of the estimated annual taxes and insurance premiums, plus a cushion not to exceed two (2) months' payments, as permitted by the Real Estate Settlement Procedures Act ("RESPA"), 12 U.S.C. § 2609.

Trustor shall maintain the Trust Property in good condition and repair and shall not commit or permit any waste, impairment, or deterioration thereof. Trustor shall not alter, remove, or demolish any improvement on the Trust Property without the prior written consent of Beneficiary. Trustor shall comply with all applicable laws, ordinances, regulations, covenants, conditions, and restrictions affecting the Trust Property, and shall not permit any use of the Trust Property that would violate any such law or regulation or that would void or make voidable any insurance required by this Deed of Trust.

Trustor shall not initiate, join in, or consent to any change in any zoning ordinance, private restrictive covenant, or other public or private restriction that would reduce the value or utility of the Trust Property without the prior written consent of Beneficiary. Trustor shall promptly notify Beneficiary of any condemnation proceeding, any proceeding by a governmental authority affecting the Trust Property, or any material casualty loss or damage to the Trust Property.

Each of the following events shall constitute an "Event of Default" under this Deed of Trust: (a) failure of Trustor to make any payment required under the Note or this Deed of Trust within [____] days after such payment becomes due; (b) breach by Trustor of any covenant, representation, or warranty contained in this Deed of Trust or any other Loan Document, which breach remains uncured for [____] days after written notice from Beneficiary; (c) the filing of a voluntary or involuntary petition in bankruptcy by or against Trustor under Title 11 of the United States Code; (d) the appointment of a receiver, trustee, or custodian for all or any portion of Trustor's property; or (e) the occurrence of a transfer or encumbrance of the Trust Property without the prior written consent of Beneficiary, in violation of any due-on-sale or due-on-encumbrance clause contained herein.

Upon the occurrence of an Event of Default, Beneficiary may, at its option and without further notice or demand (except as required by applicable law), declare the entire unpaid principal balance of the Note, together with all accrued interest and other amounts owing under the Loan Documents, immediately due and payable (the "Acceleration"). The exercise of any remedy by Beneficiary shall not preclude the concurrent or subsequent exercise of any other remedy provided herein, in the Loan Documents, or at law or in equity.

Upon the occurrence of an Event of Default, Beneficiary may instruct Trustee to exercise the power of sale granted herein and to sell the Trust Property at public auction in accordance with the applicable nonjudicial foreclosure statutes of the State of [____________]. Trustee shall give all notices required by law, including a Notice of Default and Election to Sell, a Notice of Trustee's Sale, and any other notices required by applicable state statutes. The sale shall be conducted in the time, place, and manner prescribed by law.

At any such sale, Trustee shall sell the Trust Property to the highest bidder for cash in lawful money of the United States. Beneficiary may bid at the sale and may credit against its bid all or any portion of the Secured Obligations then outstanding. Trustee shall execute and deliver to the purchaser a trustee's deed conveying the Trust Property, which deed shall be prima facie evidence of the truth of the recitals made therein regarding the default, the giving of notices, and the conduct of the sale. The recitals in any trustee's deed shall be conclusive proof of the matters stated therein.

Alternatively, Beneficiary may elect to foreclose this Deed of Trust as a mortgage by judicial foreclosure in accordance with applicable state law. In any judicial foreclosure, Beneficiary shall be entitled to the appointment of a receiver for the Trust Property, to collect rents, issues, and profits thereof pending the foreclosure. Nothing herein shall preclude Beneficiary from pursuing a deficiency judgment against Trustor following a judicial foreclosure, to the extent permitted by applicable law.

Upon written request of Beneficiary stating that all sums secured by this Deed of Trust have been paid in full and that all Secured Obligations have been satisfied, Trustee shall reconvey the Trust Property to Trustor, or to such person or persons as may be legally entitled thereto, by executing and recording a full reconveyance. Beneficiary shall deliver a request for reconveyance to Trustee within [____] days after satisfaction of all Secured Obligations, together with the original Note and this Deed of Trust marked "Paid in Full."

The reconveyance shall be at the expense of Trustor (or the person requesting it). Trustee shall have no liability for the sufficiency or accuracy of the reconveyance, except for Trustee's own willful misconduct or gross negligence. The reconveyance shall operate to release and discharge the lien of this Deed of Trust and to revest in Trustor all right, title, and interest in the Trust Property previously conveyed to Trustee hereunder.

This Deed of Trust shall be governed by and construed in accordance with the laws of the State of [____________], including all applicable statutes governing deeds of trust, nonjudicial foreclosure, and real property security instruments. To the extent that federal law preempts state law, including the provisions of the Depository Institutions Deregulation and Monetary Control Act of 1980 and the Garn-St. Germain Depository Institutions Act of 1982, such federal law shall govern.

If any provision of this Deed of Trust conflicts with applicable law, such conflict shall not affect the validity of the remaining provisions. Time is of the essence with respect to all obligations of Trustor under this Deed of Trust. This Deed of Trust shall bind and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and assigns, subject to the restrictions on transfer set forth herein.