Trust Deed

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DEFINITION of 'Trust Deed'

1. A formal document which outlines the terms of a trust agreement.

2. A common way to structure real estate purchases, where the title to a property is held in trust until the loan for the property is paid.

INVESTOPEDIA EXPLAINS 'Trust Deed'

1. A trust deed is often used when mutual funds are set up as a trust. Information that may be documented includes the powers of the trustee and any restrictions on investment vehicles.

2. Used to add security to a property purchase, the trustee does not get involved in the agreement unless there is a default on the loan, at which time the trustee would sell the property.

RELATED TERMS
  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  3. Investment Vehicle

    A product used by investors with the intention of having positive ...
  4. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Deed

    A legal document that grants the bearer a right or privilege, ...
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