A Nevada deed of trust is an agreement where a borrower signs over their property title to a trustee as collateral for a loan provided by a lender. If the borrower refunds the loan in full by the agreed-upon due date, the trustee will return the property title to the borrower. However, if the borrower can’t pay back the loan, the lender can invoke the deed’s “power of sale” clause, allowing them to foreclose the property without a judgment from the court. The lender would then own the property and be permitted to sell it to recover any unpaid debt.
Although mortgages are permitted in Nevada, deeds of trust are the more commonly-used security instrument. Mortgages typically require a judicial proceeding to take property away from non-paying borrowers and are less preferable for the lender.
- Statutes: §§ 107.015 to 107.560
- Formatting: NRS 247.110, NRS 111.312
- Signing Requirements (NRS 111.105): Notary Public
- Where to Record (NRS 111.315): County Recorder
- Recording Fees (NRS 247.305): $25 + fees required by local ordinance (generally around $42 total)
Related Forms (1)
Nevada Promissory Note – Contains the terms and conditions of loan repayment between a borrower and lender.