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 West Virginia (WV), a deed of trust is a common instrument used in real estate transactions to secure a loan for the purchase of property. It involves three parties: the borrower (trustor), the lender (beneficiary), and the trustee, who holds the legal title to the property as security for the debt. When the borrower takes out a loan to purchase property, they sign a promissory note agreeing to repay the loan and execute a deed of trust that transfers the property's title to the trustee. The trustee holds this title until the borrower fully repays the loan. If the borrower defaults on the loan, West Virginia allows for nonjudicial foreclosure, meaning the trustee can sell the property without court intervention to recoup the loan amount for the lender. This process is typically faster and less costly than judicial foreclosure, which requires court proceedings. It's important to note that while some states use mortgages, West Virginia primarily uses deeds of trust for real estate transactions involving loans.