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 Nevada, a deed of trust is commonly used to secure real estate transactions. It involves three parties: the borrower (trustor), the lender (beneficiary), and the trustee, who is typically a title company. The borrower transfers the title of the property to the trustee as collateral for the loan provided by the lender. The trustee holds the legal title until the borrower repays the loan in full. If the borrower defaults on the loan, the trustee has the authority to sell the property through a nonjudicial foreclosure process, which is faster and less costly than a judicial foreclosure because it does not require court intervention. This process is governed by Nevada Revised Statutes (NRS) Chapter 107, which outlines the specific procedures and requirements for nonjudicial foreclosures, including the issuance of a notice of default and election to sell, and the conduct of the trustee's sale. It's important for parties involved in a deed of trust to understand their rights and obligations under Nevada law.