Which of the following statements about the Tennessee deed of trust is NOT accurate?
Correct Answer
D) The trustor retains legal title to the property and may sell it freely without lender consent
It is NOT accurate that the trustor retains legal title. In a Tennessee deed of trust, the trustor (borrower) conveys legal title to the trustee at loan origination. The trustor retains equitable title and the right of use and possession, but legal title is held by the trustee. Additionally, most deeds of trust contain a due-on-sale clause that restricts the borrower's ability to sell or transfer the property without lender consent.
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