Assignment of Deed of Trust Vs. Deed or Grant Deed

by Kelly Mroz, Demand Media
    A deed of trust and grant deeds are documents that are often signed at a home closing.

    A deed of trust and grant deeds are documents that are often signed at a home closing.

    An assignment of deed of trust and grant deed sound rather similar. They both are related to property, and they both get filed in the same place. That pretty much takes care of the similarities, however, as the two documents are completely different. One transfers debt between lenders, the other transfers outright ownership to a home buyer.

    Deed of Trust

    When you borrow money and buy real estate, the lender has to make sure it will get its money back. To do this, the lender files either a mortgage or a deed of trust. Which one depends on where you bought the house. State law controls which document the lender will file. The deed of trust is more protective of the lender than the mortgage, because the deed to the property is actually signed over to a trustee. When the debt is paid in full, title to the property is signed over to the homeowner.

    Assignment of Deed of Trust

    For the assignment of deed of trust, think lender, lender, lender. Loans are often bought and sold by lenders. When a new lender buys your home loan, the deed of trust securing the loan will be transferred to the new lender. This is called assignment of the deed of trust. The terms of the loan and the amount of money you owe do not change.

    Deed or Grant Deed

    For the grant deed, think owner. When you purchase property, the deed or grant deed is the document the seller signs to transfer the property over to you. The deed is the title to the property. The term "grant" adds a little bit of extra meaning. The seller makes a promise that he owned the property he is transferring. This type of deed also may be called a warranty deed or a quitclaim deed.

    Satisfaction of the Loan

    Remember that when property is secured by a deed of trust, the trustee holds the title, not the borrower. When the mortgage is paid off, however, the title has to be given to the homeowner. This is done by a release of the deed of trust. This differs from an assignment of the deed of trust, because the homeowner now holds the title, and the trustee is not involved anymore.

    About the Author

    Kelly Mroz has more than 12 years of experience as an attorney in family, business and estate matters. She graduated magna cum laude from the University of Pittsburgh School of Law, where she served as an associate editor for the "Journal of Law and Commerce." Mroz's work has also been published in the "Pennsylvania Family Law Quarterly."

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