Legal Question in Real Estate Law in Missouri

Re: Deed of Trust

As you may already know, "Deeds" are used in Missouri (and almost everywhere else) to transfer ownership interests of various types in real estate. In Missouri, when someone borrows money to purchase real estate the lender quite often requires a security interest in the property in order to protect himself until the loan is paid off or refinanced. This is something like holding something for collateral on a loan. The "Deed of Trust" is the legal document setting out the terms of the lender's security interest, the respective rights and duties of the parties and includes terms setting forth what will happen if the borrower fails to pay back the lender as promised. (That transaction is governed by the terms of a separate legal document, most often a "promissory note"). The "Deed of Trust" is recorded with the County Recorder of Deeds, so that any subsequent purchaser or other interested party will be put on notice of the lender's security interest. Once the loan is paid off, the "Deed of Trust" will be satisfied or released by the lender. I hope that this has been of some assistance to you.