#1
Which party transfers the property in a Deed of Trust?
Grantor
ExplanationThe party transferring the property.
#2
What is the legal document that establishes a Deed of Trust?
Deed of Trust
ExplanationThe document itself that establishes the agreement.
#3
In a Deed of Trust, who holds legal title to the property?
Trustee
ExplanationThe party with legal ownership.
#4
Which of the following is NOT a party involved in a Deed of Trust?
Lender
ExplanationExcluded party in the transaction.
#5
Which of the following is typically NOT included in a Deed of Trust?
Loan interest rate
ExplanationExcluded loan term detail.
#6
What role does the Trustee play in a Deed of Trust?
Neutral third party
ExplanationActs as an impartial mediator in the transaction.
#7
What happens if the borrower defaults on a Deed of Trust?
The property goes into foreclosure.
ExplanationThe legal process initiated due to non-payment.
#8
What is the primary difference between a mortgage and a Deed of Trust?
The presence of a trustee
ExplanationInvolvement of a third-party intermediary.
#9
What is the purpose of the promissory note in a Deed of Trust?
To outline the terms of the loan
ExplanationDetailing the loan agreement.
#10
In a Deed of Trust, who has the right to initiate foreclosure proceedings?
Beneficiary
ExplanationThe party entitled to begin foreclosure.
#11
What is reconveyance in relation to a Deed of Trust?
Transfer of property title from Trustee back to borrower
ExplanationReturning ownership of the property.
#12
What is a 'power of sale' clause in a Deed of Trust?
Clause allowing the trustee to sell the property in case of default
ExplanationGranting authority to sell the property.
#13
What is the term for a Deed of Trust that involves more than one property?
Joint Deed of Trust
ExplanationInvolving multiple properties.
#14
What is the difference between a Deed of Trust and a mortgage in terms of foreclosure?
In a mortgage, foreclosure requires court involvement; in a Deed of Trust, it does not.
ExplanationLegal process involvement.
#15
What is the purpose of the reconveyance deed in a Deed of Trust?
To transfer the property back to the borrower once the loan is paid off
ExplanationReturning property ownership after loan fulfillment.