A deed of trust is a legal document that transfers ownership of real property (real estate) to a trustee until the person or entity buying the real property repays a loan for the purchase of the real property. A deed of trust is similar to a mortgage—some states use a mortgage and other states use a deed of trust.

In a deed of trust transaction a lender (the bank) gives a borrower (who is purchasing the real property) money to pay the seller, and the borrower gives the lender one or more promissory notes for repayment of the loan. As security for the promissory notes, the borrower transfers the ownership interest (title) in the real property to a trustee—often a title company—to hold until the borrower repays the lender.

If the borrower fails to timely make payments and defaults on the loan, the property generally may be sold without the lender using or going through the court system. This is known as nonjudicial foreclosure and is usually less time-consuming and less expensive for the lender.

A deed of trust is also known as a trust deed, a trust indenture, an indemnity mortgage, or a common-law mortgage.

In Louisiana, the concept of a deed of trust is not commonly used as it is in some other states. Instead, Louisiana primarily operates under a system that uses mortgages to secure repayment of a loan for the purchase of real property. When a borrower takes out a loan to purchase property, they sign a mortgage agreement, which creates a security interest in the property in favor of the lender. If the borrower defaults on the loan, the lender must go through judicial foreclosure, which involves the court system, to enforce the security interest and potentially sell the property to recoup the loan amount. Louisiana's legal framework does not provide for nonjudicial foreclosure as described in the deed of trust process; all foreclosures must proceed through the courts. Therefore, while the general concept of securing a loan with an interest in real property is similar, the specific legal instrument and process differ from those in states that use deeds of trust.