A deed of trust or a trust deed is a document used in a real estate transaction and when one party has taken out a loan from another party to purchase a property. As per Section 3 of the Indian trust act 1882, A trust is an obligation attached to the ownership of the property out of confidence accepted by the owner or declared and accepted by him for the benefit of another. The Government of India cannot be a trustee even if every person who is capable of holding property can do so. A trustee of any religious institution cannot be a government servant or vice versa. Bailment, agency, mortgage, or any other legal relationship is different from trust ownership and cannot pass a good title to the property even to a bona fide transferee for value without any prior notice. A trust can be express or implied. The author of the trust is a person who declares the confidence and the beneficiary is a person who accepts the confidence and the subject matter is trust money or trust property. As per section 6 of the Indian trust act 1882 states that trust should have a lawful purpose and hey it should not be forbidden by law, is fraudulent, is immoral or opposed to public policy as regarded by the court of law, is of such a nature that, if permitted, it would defeat the provision of any law or involve or Implies any injury to the person or property of another.

The trustee cannot renounce the trust after he has accepted it unless It is with the permission of the principal civil court of original restriction or by the virtue of special power in the instrument of trust or if the beneficiary is competent to contract and the renunciation can be done with his consent. A trust can also be revoked at the pleasure of the testator as it is created by the will.
A trust is a high-yielding income stream and has portfolio diversification however, it has no capital appreciation and cannot be liquidated.

There is a difference between mortgage and trust even if both are used in bank and private loans for creating a lien on real estate and are recorded as debts in the country, But the parties involved in a mortgage are borrower and lender however, there are 3 parties involved in a trust deed that is a borrower, a lender, and the trustee.

As per the Indian trust act 1882, a trust is an organization where the trustor or the owner decides to transfer the rights of his property to a trustee so that a beneficiary can have the benefits through the property and there is a declaration sign which states that the trustee shed to hold the property for the recipient of the trust.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.