In Washington State, which instrument is used almost exclusively as the primary security instrument for real estate loans?
Correct Answer
B) Deed of trust with a trustee holding title
Washington State uses the deed of trust almost exclusively as its primary security instrument under RCW Chapter 61.24, the Deed of Trust Act. In a deed of trust, the borrower (trustor) conveys bare legal title to a neutral third-party trustee, who holds it on behalf of the lender (beneficiary) until the loan is repaid.
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