In California, a deed of trust involves three parties. Who holds legal title until the loan is paid off?
Correct Answer
C) The trustee
In a deed of trust, the trustee holds legal title as security for the loan until the borrower pays off the debt.
Why This Is the Correct Answer
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.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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