Definition
A trustee's deed is issued by a trustee in a trust deed foreclosure or trust relationship, conveying property according to trust terms. Common in non-judicial foreclosure states.
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In states using trust deed financing rather than mortgages, a trustee's deed is issued when the trustee exercises the power of sale during foreclosure. These deeds transfer title from the trustee to the foreclosure purchaser. Trustee's deeds typically provide minimal warranties, similar to bargain and sale deeds, making title insurance important. The legal process for issuing trustee's deeds is faster than judicial foreclosure.
Pro Tip
Title insurance is crucial with trustee's deeds from foreclosures due to minimal warranties.
Example
In a non-judicial foreclosure, the trustee issues a trustee's deed transferring the property to the foreclosure sale winner.