A deed of trust is an agreement where the borrower is using the property to secure a loan. A deed of trust is the security instrument that details the transaction between the lender and the borrowers.In real estate transactions, a trust deed transfers the legal title of a property to a third party until the borrower repays their debt to the lender. The assets held in a revocable trust are also non-probate property. Some states allow both mortgages and deeds of trust. A main difference is that a mortgage foreclosure proceeding needs to go through the courts. Understand the distinctions between contract for deed and deed of trust in real estate. Explore the pros, cons, and unique aspects of each. What is the difference between a Deed and a Deed of Trust? With a mortgage, the borrower holds the property's title.