Under a Maryland deed of trust, which party holds legal title to the property during the loan repayment period?
Correct Answer
A) The trustee, who holds title on behalf of the lender
In a Maryland deed of trust, the borrower (trustor) conveys legal title to a neutral third-party trustee, who holds that title on behalf of the lender (beneficiary) for the duration of the loan. Once the loan is fully repaid, the trustee reconveys title back to the borrower. This three-party structure is what distinguishes a deed of trust from a traditional mortgage.
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