Marcus borrows $350,000 from First Virginia Bank to purchase a home in Richmond. The loan is secured by the property. Which party in the deed of trust holds legal title to the property during the loan term?
Correct Answer
D) The settlement attorney or title company, as the trustee
In a Virginia deed of trust, the trustee — typically a title company, settlement attorney, or other neutral third party — holds legal title to the property during the loan term. The trustee holds this title in trust for the benefit of the lender (beneficiary) and releases it back to the borrower (trustor) upon full repayment, or conducts a foreclosure sale upon default.
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