What is included in a deed of trust?

A deed of trust is a key legal document used in real estate transactions, primarily in states where it serves as a security instrument for a loan. The inclusion of the amount being loaned by the borrower is essential because it outlines the financial obligation that the borrower has to the lender. This amount represents the principal of the loan, which is the basis for determining the borrower's repayment terms, interest rates, and the overall mortgage agreement's structure.

While property taxes, homeowner's insurance details, and home maintenance requirements are important elements of homeownership and may be referenced in other documents, they are not part of a deed of trust. The deed of trust specifically focuses on securing the loan and establishing the rights of the lender in relation to the property in case the borrower defaults. This clear connection between the loan amount and the security interest in the property makes it fundamental to the deed of trust's function.