Title

• "Title" refers to a person's ownership in or right to a property. Title is transferred between buyers and sellers during a purchase transaction as part of a deed, usually a grant deed or a quitclaim deed.
  
  

Example

• For example, Mr. and Mrs. Smith buy a home from Mr. and Mrs. Brown. Mr. and Mrs. Brown transfer their title or ownership to Mr. and Mrs. Smith through a grant deed. This deed is notarized and recorded with the county recorder to legally transfer the property to the new owners.
  
  

Parts

• There are three parts to a title: the owner's name, the owner's marital status, and the owner's interest in a property. For Mr. and Mrs. Smith this might read "John Smith and Jane Smith (names), husband and wife (marital status), as joint tenants (ownership; in this case, an equal 50/50 joint ownership)."
  
  

Deed of Trust

• A deed of trust, also called a security instrument, is a legal document that protects a lender's interest in a property as part of a mortgage loan. For example, if Mr. Smith borrowed money from Wells Fargo to buy his house, Wells Fargo would create and record a deed of trust on his property.
  
  

Function

• A deed of trust provides a lender with security against money borrowed. This document gives lenders the right and ability to seize and sell the property if a mortgage is not repaid. It also sets forth rules for levying and collecting late fees, interest and payments from the borrower.
  
  

Features

• A deed of trust consists of the following main sections: identification of the borrower and lender; acknowledgement of the interest rate and monthly payment; statement of the loan amount and terms; and provisions for insurance, liabilities and reconveyance. Like a document transferring title, this document must be signed in front of a notary public and recorded with the county recorder's office.