In Colorado, which of the following instruments is the standard security document used in residential real estate transactions, and who holds title under it until the debt is satisfied?
Correct Answer
A) A deed of trust, held by the county Public Trustee
Colorado is a deed of trust state. In a deed of trust, the borrower (trustor) conveys bare legal title to the county Public Trustee, who holds it on behalf of the lender (beneficiary) until the debt is paid. This is a uniquely Colorado institution — each county has a Public Trustee who is a government official.
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