The maximum number of properties that can be covered by a trust deed without a blanket encumbrance is:

This question addresses an important concept in California real estate financing - the use of trust deeds as security instruments. Understanding this limitation is crucial for real estate professionals who may encounter situations involving multiple properties. The question tests knowledge of blanket encumbrances, which are liens covering multiple properties. In California, there is no statutory limit on how many properties can be covered by a single trust deed without it being classified as a blanket encumbrance. This distinction matters because blanket encumbrances often have specific requirements and may affect the priority of liens. The question challenges students by presenting common misconceptions that might suggest arbitrary limits (like three or two properties), when in reality the determination is based on the nature of the lien rather than a fixed number. This connects to broader real estate financing concepts including priority of liens, security instruments, and encumbrance types.