In Virginia, which security instrument is exclusively used to secure a real estate loan, rather than the mortgage instrument used in many other states?
Correct Answer
B) Deed of trust
Virginia exclusively uses a deed of trust as the primary security instrument for real estate loans. Unlike a mortgage, which involves two parties, a deed of trust involves three parties: the trustor (borrower), the trustee (a neutral third party), and the beneficiary (the lender). This is a fundamental Virginia-specific financing concept.
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