A Virginia real estate instructor is explaining the deed of trust structure to a pre-license class. She lists several true statements about Virginia deeds of trust. Which of the following is NOT a true statement about a Virginia deed of trust?
Correct Answer
A) The trustee must obtain a court order before conducting a foreclosure sale
Option C is NOT true. Virginia is a non-judicial foreclosure state, meaning the trustee does NOT need to obtain a court order before conducting a foreclosure sale. The power of sale clause in the deed of trust grants the trustee authority to sell the property upon default without any court involvement. This is one of the most important and frequently tested distinctions about Virginia's deed of trust structure.
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