In Texas, a deed of trust is primarily used as?

A deed of trust in Texas functions primarily as a security instrument for mortgage transactions. This type of document involves three parties: the borrower (trustor), the lender (beneficiary), and a trustee. The borrower uses the deed of trust to secure a loan for purchasing real property. By signing the deed of trust, the borrower conveys legal title to the property to the trustee, who holds it as security for the loan until the borrower repays it in full.

If the borrower defaults on the loan, the trustee has the authority to sell the property at a foreclosure sale to satisfy the debt, ensuring that the lender's interests are protected. This process allows for a non-judicial foreclosure, which can be quicker and less costly than judicial foreclosure processes, making the deed of trust a favored arrangement in many states, including Texas, for securing loans used to buy or refinance property.

The other options—such as a lease agreement, title transfer document, and contract for sale—do not align with the primary purpose of a deed of trust and involve different legal mechanisms for property rights and transactions.