Under Oregon's Trust Deed Act, how many parties are involved in a trust deed transaction?
Correct Answer
C) Three parties: the grantor, the trustee, and the beneficiary
Under ORS Chapter 86, a trust deed involves three parties: (1) the grantor, who is the borrower and conveys the property to the trustee as security; (2) the trustee, a neutral third party who holds bare legal title; and (3) the beneficiary, who is the lender and holds the promissory note. This three-party structure distinguishes a trust deed from a traditional two-party mortgage.
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Related Concepts
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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A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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