A Nevada real estate licensee is explaining deeds of trust to a client. Which of the following statements about Nevada deeds of trust is NOT accurate?
Correct Answer
A) The trustee is typically an agent of the beneficiary and acts exclusively in the lender's interest
Option C is NOT accurate. The trustee in a Nevada deed of trust is NOT an agent of the beneficiary and does not act exclusively in the lender's interest. The trustee is a neutral third party who holds bare legal title for the benefit of both the trustor and the beneficiary. The trustee's role is to act impartially and in accordance with the terms of the deed of trust and Nevada law (NRS Chapter 107). Acting exclusively in the lender's interest would violate the trustee's neutral fiduciary role.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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