A Maryland deed of trust is used to secure a loan by placing the borrower’s property in a trust until the lender has been repaid. This type of arrangement primarily differs from a mortgage in that a disinterested third party will be appointed as the trustee to hold the property title. Furthermore, the trustee and lender will not be required to go through a judicial foreclosure process if the borrower fails to uphold the loan terms. Instead, the trustee can sell the property out of court to repay the lender.
- Statutes: Art. “Real Property,” Title 7, Subtitle 1
- Formatting: § 3-104(d), (e)(1)
- Signing Requirements (§§ 4-101(a)(1)): Notary Public
- Where to Record: Clerk of the Circuit Court (Dept. of Land Records)
- Recording Fees (§ 3-601(a)(2)(ii)): $20
- Land Instrument Intake Sheet: The state requires this form to be completed and filed with the deed (see instructions).
Related Forms (1)
Maryland Promissory Note – A lending agreement in which the borrower promises to repay the lender in accordance with the agreed terms.