What Is a Deed of Trust, and Does Florida Use One?

Short answer

A deed of trust is a three-party security instrument (borrower, lender and a neutral trustee) that usually includes a power of sale, letting the trustee sell the home after default without going to court. Florida does not use deeds of trust for home loans: it uses a mortgage, and F.S. 702.01 says all mortgages shall be foreclosed in equity, meaning through the courts (as of November 2026).

Definition

A recorded document in which the borrower conveys an interest in the property to a trustee to secure the loan for the lender. It typically has a power-of-sale clause that allows nonjudicial foreclosure.

Worked example

Example only: a borrower in a deed-of-trust state misses payments. The trustee follows that state's notice rules and sells the home at auction, with no lawsuit. In Florida, the lender has to file a foreclosure lawsuit, get a final judgment, and then the clerk sells the home on a date not less than 20 or more than 35 days after the judgment under F.S. 45.031, unless the plaintiff consents to a later date.

Deed of trust vs mortgage

• Parties: a deed of trust has three (borrower, lender, trustee). A Florida mortgage has two (borrower and lender).
• Foreclosure: a deed of trust usually allows a trustee's sale without a court order. A Florida mortgage requires a court case and a judicial sale by the clerk.
• Paperwork for you: either way you also sign a promissory note, which is your promise to pay. The mortgage or deed of trust is what ties that promise to the house.
• After payoff: a Florida lender must record the release within 60 days under F.S. 701.04; see payoff statement.

Why judicial foreclosure matters to buyers

Because every Florida foreclosure runs through the court, there is a public case file, a final judgment and a clerk's certificate of title. That gives a title search a clear record to review when you buy a property that went through foreclosure. Struggling owners have options before a sale, such as a loan modification, short sale or deed in lieu.

In South Florida

Florida's law closes the door on using a different label to skip court. F.S. 697.01 says written instruments that convey property to secure a debt, including ones made to a third party in trust for the creditor, shall be deemed and held mortgages and are subject to the same foreclosure rules. So even a document titled "deed of trust" on Florida property is treated as a mortgage. F.S. 702.01 also says the foreclosure claim, if tried, is tried by the judge without a jury. This is general information, not legal advice; a borrower facing foreclosure should talk to a Florida attorney or a HUD-approved housing counselor.