Maria purchases a home in Boise and finances it through a local credit union. The loan is secured by a deed of trust. Which of the following correctly identifies the three parties to this deed of trust?
Correct Answer
B) Maria as grantor, a title company as trustee, and the credit union as beneficiary
Under the Idaho Trust Deeds Act (I.C. § 45-1501 et seq.), a deed of trust has three parties: (1) the grantor — the borrower who conveys bare legal title to the trustee as security; (2) the trustee — a neutral third party (often a title company) who holds bare legal title; and (3) the beneficiary — the lender (here, the credit union) whose loan is secured. Maria is the grantor, the title company is the trustee, and the credit union is the beneficiary.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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