What is the difference between a Deed (such as a warranty deed or quit claim deed) and a Deed of Trust?

A warranty deed or quit claim deed TRANSFERS TITLE or OWNERSHIP of real property. When you purchase property, you usually receive a warranty deed from the seller to you to show that you now own the property. When you obtain a loan in order to purchase property, you usually sign a Promissory Note for the amount of the loan, and a Deed of Trust which, in Colorado, is the "lien" or "mortgage" that secures your payment of the Promissory Note to the lender. When you pay off the loan, the lender will request that the Public Trustee release the Deed of Trust. If you fail to make your payments on the Promissory Note, you may be "in default" on your loan and the lender may request the Public Trustee to foreclose on the Deed of Trust.

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