In Nevada real estate transactions, which instrument is used as the primary security device for a real property loan rather than a mortgage?
Correct Answer
B) A deed of trust, which involves three parties: trustor, trustee, and beneficiary
Nevada uses the deed of trust as its primary security instrument for real property loans, as established under NRS Chapter 107. A deed of trust involves three parties: the trustor (borrower), the trustee (a neutral third party who holds bare legal title), and the beneficiary (lender). This structure enables non-judicial foreclosure through a trustee's sale, which is faster and less expensive than judicial foreclosure.
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