Essentially, a deed of trust provides a lender with security for the repayment of the loan and effectively functions similarly to a mortgage. Stepbystep guide on how to transfer property to a living trust in California preparing deeds, recording with the county and more.A deed of trust is a security instrument, just like a mortgage. A deed of trust, also called a trust deed, is the functional equivalent of a mortgage. Despite common parlance, California is not a "mortgage" state. A trust deed serves the same purpose as a mortgage both are methods of using a piece of property as collateral to secure a loan. San Jose; San Martin; Santa Clara; Saratoga; Stanford; Sunnyvale. I agree that you should not attempt this on your own. While these terms sound similar, they are totally unrelated. Later on, sign the deed in the presence of a notary so the transfer of property can be recorded legally.