Under a Tennessee deed of trust, who holds legal title to the property during the loan repayment period?
Correct Answer
C) The trustee, who holds title on behalf of the beneficiary
In a Tennessee deed of trust, the trustee holds legal title to the property as a neutral party during the loan repayment period. The trustor (borrower) conveys legal title to the trustee, who holds it for the benefit of the beneficiary (lender). Upon full repayment, the trustee reconveys title to the trustor. This arrangement enables the trustee to conduct a non-judicial foreclosure sale if the borrower defaults, as governed by Tenn. Code Ann. § 35-5-101 et seq.
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