Glossary · Doing the deal
In short
This is a document used in some states (instead of a mortgage) to secure a loan with real estate. It transfers legal title to a neutral third party (trustee) until the loan is paid off.
If your deal includes real estate, the bank will require a deed of trust as collateral. Ensure you understand the state-specific implications, as it outlines the lender's rights if you default. Your closing attorney will manage this document.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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