What Is a Trustee’s Deed in Real Estate?

A Trustee’s Deed is a legal document used when a trustee transfers property to a buyer or beneficiary. It is most commonly issued after a non-judicial foreclosure sale in states that use a Deed of Trust instead of a mortgage. It may also be used when transferring property held inside a trust.

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💡 Why a Trustee’s Deed Matters

Trustee’s Deeds are commonly used after foreclosure auctions in states like California, Arizona, Nevada, Washington, and Texas where lenders use Deeds of Trust. Because the trustee acts on behalf of the lender, the deed usually provides limited or no warranty of title.

  • ✔ Used after non-judicial foreclosure sales
  • ✔ Issued by a trustee named in a Deed of Trust
  • ✔ Often offers no warranties or guarantees of clear title
  • ✔ Buyer may inherit liens or title defects
  • ✔ Also used to transfer property from a living trust

Related: What Is a Deed of Trust?

📌 Common Reasons a Trustee’s Deed Is Used

Trustee’s Deeds appear in both foreclosure and estate/trust administration situations.

  • Foreclosure sales in non-judicial foreclosure states
  • Transferring property from a living trust to beneficiaries
  • Estate planning transfers by a successor trustee
  • Real estate held in a family trust
  • Sales of foreclosed investment property

Related: What Is a General Warranty Deed?

🔎 How a Trustee’s Deed Works

The process depends on whether the deed comes from a trustee sale or a living trust transfer. In foreclosure states with Deeds of Trust, the trustee sells the property without court involvement.

  • 1. Borrower defaults on a Deed of Trust loan.
  • 2. Trustee schedules a trustee sale (public auction).
  • 3. Highest bidder wins at the auction.
  • 4. Trustee issues a Trustee’s Deed to the winning bidder.
  • 5. Deed is recorded with the county recorder.
  • 6. Buyer becomes legal owner, often with limited title protection.

If title issues remain, a Quiet Title Action may be required.

❗ FSBO Warning: Trustee’s Deeds Offer Limited Protection

Trustee’s Deeds typically offer no warranties, meaning the buyer accepts the property “as-is.” Foreclosure properties often come with title issues, unpaid liens, or occupants who refuse to leave.

  • No guarantee of clear title
  • May need to evict former owners or tenants
  • Liens may still attach to the property
  • Often sold without inspection or disclosure
  • Title insurance may require extra steps

Learn more: What Is Title Insurance?

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