What is a T.D.? - Posted by Lisa in Oz

Real Estate Investing
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Posted by Bill Gatten on June 03, 1999 at 19:51:16:

“Trusty Deedy,” indeedy. Harumph!

What it means as a buyer, is that if you’re buying the property in a Trust Deed state (or by means of a note secured by a trust deed), you will be given a Grant Deed which says you are the absolute, undeniable owner of the property; but that if you ever screw up on on your mortgage obligations, the provisions of the trusty deedy thingy will be invoked and you will be out in the streety on your seaty (as it were).

Bill

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What is a T.D.? - Posted by Lisa in Oz

Posted by Lisa in Oz on June 03, 1999 at 17:38:28:

I’ve got an email from a realtor and his is talking about the " first T.D. on the property is . . . " Is this a title deed? Sounded like a mortgage to me.

Thanks guys,

Lisa in Oz

3

Re: What is a T.D.? TRUST DEED - Posted by Bill Gatten

Posted by Bill Gatten on June 03, 1999 at 19:05:56:

Lisa, in the states (in most some states) a loan is secured by means of what’s referred to as a “Trust Deed (or “deed in trust”).”

Essentially, in such an arrangement, the property’s legal title (its “Grant Deed”) is vested with the borrower; however, a second deed is placed into a beneficiary directed trust arrangement (not a true trust, but consider it so for simplicity’s sake), and the lender becomes the trust’s Beneficiary (the borrower being the Grantor) and names another 3rd party entity (usually a title insurance company) as the Trustee… to hold the “naked” legal title in trust (the property’s “beneficiary title” remains with the borrower).

The verbiage within the security instrument (loan document) is such that in the event of default by the Grantor (the borrower), the trust’s beneficiary (the lender) has the sole right to direct the trustee to foreclose and sell the property in order to cure the default.

This is a shortened version, but hopefully it answers your question.

Bill

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Re: What is a T.D.? - Posted by Tom

Posted by Tom on June 03, 1999 at 18:23:16:

I am sure in this case it means Trust Deed.

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Thanks Bill, great answer - Posted by Lisa in Oz

Posted by Lisa in Oz on June 03, 1999 at 19:16:22:

Ok, I understand the trusty deedy thing, but what does it mean to me if I’m buying the property?