FinancingEASY
In Texas, the most common security instrument for real estate loans is:
Correct Answer
B) A deed of trust
Texas primarily uses deeds of trust, which involve three parties: borrower (trustor), lender (beneficiary), and trustee.
Answer Options
A
A mortgageB
A deed of trustC
A land contractD
A promissory noteVideo Explanation3 min
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Related Topics & Key Terms
Related Topics:
foreclosure-processestexas-real-estate-lawfinancing-instruments
Key Terms:
deed of trustnon-judicial foreclosureTexas Property Code § 51.002trustorsecurity instrument
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.
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