In Arkansas real estate transactions, which instrument is primarily used as the security device for a home loan, and how many parties does it involve?
Correct Answer
B) A deed of trust, involving three parties: the trustor, the trustee, and the beneficiary
Arkansas primarily uses deeds of trust as the security instrument for real estate loans. Under Ark. Code Ann. § 18-50-101 et seq., a deed of trust involves three parties: the trustor (borrower), the trustee (neutral third party who holds legal title), and the beneficiary (lender). This three-party structure enables the non-judicial foreclosure process unique to Arkansas.
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