What Is a Trustee’s Deed?

A trustee’s deed conveys property held by a trustee to a purchaser. It is commonly used in two situations: when a property is sold at a trustee’s sale following a deed of trust foreclosure, and when a trustee distributes property from a trust.

Trustee’s Sale (Foreclosure)

In states that use deeds of trust, a non‑judicial foreclosure is conducted by a trustee. After the borrower defaults and the notice period expires, the trustee auctions the property. The highest bidder receives a trustee’s deed upon sale, which conveys the property subject to senior liens and encumbrances.

Trust Administration

When property is held in a living trust, the trustee may transfer it to beneficiaries or sell it. In that case, the trustee executes a trustee’s deed to convey title. The deed recites the trust instrument and authority of the trustee.

Due Diligence

If you purchase property via a trustee’s deed, review the foreclosure documents or trust agreement to confirm the trustee’s authority and identify any outstanding liens. Title insurance is highly recommended.