Washington primarily uses which security instrument?
Question & Answer
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Mortgages only
While mortgages are legally valid in Washington and can be used, they are not the primary instrument and require judicial foreclosure — a lengthy, expensive court process — making them uncommon in Washington residential real estate lending.
Deeds of trust
Land contracts only
Land contracts (also called contracts for deed) are used in some seller-financing situations in Washington but are not the primary or predominant security instrument used by institutional lenders in the state.
Security agreements
Security agreements are UCC instruments used to secure interests in personal property (such as equipment or fixtures), not real property; they are not used as real estate loan security instruments in Washington.
Why is this correct?
Washington's Deed of Trust Act (RCW 61.24) expressly governs the use of deeds of trust as the primary real estate security instrument in the state, and virtually all conventional residential mortgage loans in Washington are secured by deeds of trust rather than traditional mortgages. The deed of trust allows lenders to foreclose non-judicially through the trustee in as little as 190 days after a notice of default, making it far more efficient than a judicial mortgage foreclosure. This is why lenders strongly prefer — and Washington's market has standardized around — the deed of trust structure.
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