A Missouri real estate instructor is teaching a class on deeds of trust. She lists several characteristics that distinguish Missouri's deed of trust from a traditional two-party mortgage. Which of the following is NOT a characteristic of a Missouri deed of trust?
Correct Answer
A) It gives the lender an equitable lien while the borrower retains full legal title
Option C describes how a traditional mortgage works in a lien-theory state, NOT how a Missouri deed of trust works. In a lien-theory mortgage, the borrower retains full legal title and the lender receives only an equitable lien. In Missouri's deed of trust, the borrower (trustor) actually conveys bare legal title to the trustee at closing. The borrower retains equitable title, but legal title passes to the trustee. Therefore, C is NOT a characteristic of a Missouri deed of trust.
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