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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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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