OTHER FORMS OF DEEDS--MORTGAGES
There is one condition under which the grantor does not turn over
or deliver the deed to the grantee after it is made. This is known
as a Deed in Escrow.
A deed "delivered in escrow" is when the document is placed with a
third party to be by him delivered to the grantee when a certain
time has elapsed or certain conditions have been fulfilled.
When the conditions have been complied with, the deed is given by
its custodian to the grantee, which is as legal as if it were
given by the grantor in person.
TRUST DEEDS
A trust deed is the form used to convey property to some person
who is entitled to its proceeds or profits.
This form of deed is often used to secure the payment of a debt.
In some states they take the place of mortgages.
Where the trust deed is meant to take the place of a mortgage to
secure a debt payment, the property is deeded to a third party
known as a "trustee."
The trustee in this case is the agent for debtor and creditor, and
he must act impartially.
The trust deed specifies the character of the debt to be secured.
In case of failure to pay the debt as agreed on, the trustee may,
if so warranted, sell the property, and pay the obligation from
the proceeds.
The grantor in a trust deed, if not stipulated to the contrary, is
entitled to all the rents and profits of the property; for it
remains virtually his, until he has failed to fill his contract.
When the indebtedness secured by the trust deed has been paid, the
trustee must at once execute a paper known to law as a Release
Deed. When recorded this instrument discharges the lien.
