Which instrument is used almost exclusively in California by lenders to secure real property loans?

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In California, the instrument used to secure real property loans is a deed of trust, often called a trust deed. This setup involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee) who holds title to the property in trust. If the borrower defaults, the trustee can initiate a nonjudicial foreclosure under the power of sale, which is faster and less costly than a court-ordered foreclosure. This streamlined process is why lenders in California rely on this instrument almost exclusively.

A mortgage, by contrast, typically requires judicial foreclosure in many states, and a lien is simply a claim against the property rather than a complete security instrument. The three-party arrangement and the nonjudicial foreclosure feature of the deed of trust (trust deed) are the defining reasons it’s the standard in California.