Which of the Following Best Describes How a Deed of Trust

question 9

Multiple Choice

Which of the following best describes how a deed of trust works?

• A) The state gives a deed to the lender to hold until the borrower satisfies the debt.
• B) The borrower gives a deed to the lender to hold until the borrower satisfies the debt.
• C) When a party borrows money to purchase property,the seller holds the deed until the debt is paid off,at which point it will be conveyed to the borrower.
• D) When a trust is the owner of real property,a special type of deed is required.
• E) The borrower conveys a deed to a third party who holds legal title until the debt is paid off or the borrower defaults.

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Definitions:

Budgeted Sales

Projected sales figures used for planning purposes, often as part of a company's budgeting process to estimate future revenue.