| a written instrument legally conveying property to a trustee, such as a bank, often for the purpose of securing a mortgage or promissory note. |
Trust Deed
1. A formal document which outlines the terms of a trust agreement.
2. A common way to structure real estate purchases, where the title to a property is held in trust until the loan for the property is paid.
Investopedia Commentary
1. A trust deed is often used when mutual funds are set up as a trust. Information that may be documented includes the powers of the trustee and any restrictions on investment vehicles.
2. Used to add security to a property purchase, the trustee does not get involved in the agreement unless there is a default on the loan, at which time the trustee would sell the property.
Related Links
Mutual Fund Basics Tutorial
The REIT Way
See also: Investment Vehicle, Mutual Fund, Real Estate, Real Estate Investment Trust - REIT, Trust, Trustee
