Trustee's Deed Upon Sale
The deed issued by the Trustee to the winning bidder at a non-judicial foreclosure sale — the document that actually transfers title.
A Trustee's Deed Upon Sale is the deed issued by the Trustee to the highest bidder at a non-judicial foreclosure sale. It is the document that ACTUALLY TRANSFERS TITLE from the foreclosed homeowner to the buyer (typically the foreclosing lender as a credit bid, or a third-party investor). The Trustee's Deed recites: the Deed of Trust being foreclosed, the default, the NOD and Notice of Trustee Sale compliance, the sale process, the highest bid, and the grant of title to the buyer. The Trustee's Deed is recorded in the county land records. After recordation, the buyer becomes the legal owner, and the former homeowner becomes a tenant (subject to eviction/unlawful detainer). The Trustee's Deed is NOT a warranty deed — title is 'as-is,' and the buyer assumes all title defects.
Purpose
- 1Transfer title from the foreclosed homeowner to the buyer at the non-judicial foreclosure sale
- 2Document the Trustee's authority to sell and compliance with the foreclosure process
- 3Provide the buyer with a recorded instrument establishing ownership
Who Prepares It
The Trustee (or the Trustee's attorney) prepares the Trustee's Deed and delivers it to the winning bidder after the sale. Recorded in county land records.
When It Is Used
Issued immediately after the non-judicial foreclosure sale to the winning bidder.
Legal Effect
The Trustee's Deed transfers legal title. The former homeowner's interest is extinguished (subject to redemption rights if the state provides a post-sale redemption period). The buyer may then file an unlawful detainer/eviction action against the former homeowner. A defective Trustee's Deed (Trustee lacked authority, sale was procedurally defective, notice was improper) may be set aside — but the burden is on the former homeowner to challenge it (typically through a motion to set aside sale or a quiet title action).
Common Mistakes
Homeowner Rights
Frequently Asked Questions
What happens after the Trustee's Deed is recorded?▼
The buyer owns the property. The buyer (or an REO/eviction attorney for the lender) will typically: send a Notice to Vacate, file an unlawful detainer/eviction action if you don't vacate, and seek a writ of possession. You may have a post-sale redemption period in some states. You also have the right to challenge the sale through a motion to set aside sale or a wrongful foreclosure lawsuit if there were procedural defects.
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