Does the Deed of Trust Show Ownership of a Property?

When dealing with real estate—whether buying, inheriting, or transferring—it’s essential to understand what legal documents actually prove ownership. One of the most common points of confusion is the deed of trust. Many people assume it shows who owns the property, but that's not the case.

So, what exactly is a deed of trust—and does it prove ownership? Let's clear up the confusion.

🧾 What Is a Deed of Trust?

In California and many other states, a deed of trust is used instead of a mortgage when a person borrows money to buy real estate. It’s a security instrument that links three parties:

• Trustor: The borrower (usually the homeowner)

• Beneficiary: The lender (usually a bank or mortgage company)

• Trustee: A neutral third party that holds title “in trust” until the loan is repaid

A deed of trust gives the lender the right to foreclose on the property if the borrower fails to repay the loan.

🏡 Does the Deed of Trust Show Who Owns the Property?

No. A deed of trust does not show legal ownership of the property—it shows that there is a loan secured by the property.

The document that proves ownership is the grant deed (or in some cases, a quitclaim deed). This is the deed that transfers title to a buyer, heir, or new owner and is recorded in the county where the property is located.

In summary:

Document	Purpose	Shows Ownership?
Grant Deed	Transfers title	✅ Yes
Deed of Trust	Secures a loan	❌ No
Quitclaim Deed	Releases or transfers interest	✅ Possibly (depends on context)

🔍 How to Verify Who Owns a Property

If you're unsure who owns a property in California, here are steps you can take:

1. Check County Records. Visit the county recorder's office where the property is located. Most counties offer online access to real estate documents.

2. Order a Title Report. A title company can provide a full history of the property, including current ownership, liens, and encumbrances.

3. Look for the Latest Recorded Grant Deed. This is usually the clearest indicator of who legally owns the property.

🏠 Why This Matters in Estate and Probate Planning

Understanding who legally owns a property—and how it’s titled—is critical for:

• Transferring property through a trust or will

• Avoiding probate

• Settling debts after a loved one’s death

• Determining rights of survivorship or joint tenancy

If a home is still secured by a deed of trust at the time of death, the debt must still be addressed—but it doesn’t affect who inherits the title.

Final Thoughts

A deed of trust is not proof of ownership—it’s proof that someone borrowed money using a home as collateral. To determine who truly owns a property in California, you’ll want to look at the most recent grant deed and recorded title documents.

Whether you’re planning your estate, dealing with probate, or just want clarity about your real estate holdings, understanding what’s on title can save you—and your family—time, money, and legal trouble.

Need help reviewing title or transferring property through an estate plan?📞 Call us at (626) 460-1763📧 Email LV@MoravecsLaw.com

We’ll help you make sure everything is in the right name—and stays that way.

Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions? call (626) 460-1763 or email LV@MoravecsLaw.com.

Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.