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 Pennsylvania, the primary instrument used for securing a loan for the purchase of real estate is a mortgage, not a deed of trust. Pennsylvania is a 'title theory' state where the property title remains with the mortgage lender until the loan is paid off, but the practical use of a mortgage differs from a deed of trust. Unlike states that use deeds of trust, which allow for nonjudicial foreclosure, Pennsylvania requires judicial foreclosure. This means that if a borrower defaults on a loan, the lender must go through the court system to foreclose on the property. The process involves filing a lawsuit and obtaining a court judgment before the property can be sold to satisfy the debt. Therefore, while the concept of a deed of trust exists, it is not the typical method used in Pennsylvania for real estate transactions involving a loan.