A Deed of Trust or a Deed in Lieu of Foreclosure is security for the seller that lets them reclaim the property if the buyer defaults.
Some states (like Florida) do not allow it, but it can still be written into the contract and the seller can take it to court. Alternatively, a trust acquisition can be used to provide similar protection.
A Deed in Lieu of Foreclosure is written into all of our creative deals. Our general terms are if a buyer misses 2 consecutive months of payments, the property is reclaimed by the seller without having to go through foreclosure. If a buyer was to default, the seller reclaims the property, including all equity, renovations & appreciation, has profited from the down payment and monthly payments made and is free to sell the property again. An investor or retail buyer does not want to lose their money or investment & it is rare to find a buyer default on this type of deal. But things can happen and the seller is provided with excellent incentive and protection.