Maria purchased a home in Spokane, Washington and financed it through a local credit union. The credit union required her to sign a security instrument that conveyed bare legal title to a neutral third party while she retained equitable title and the right to use the property. Which document did Maria most likely sign?
Correct Answer
B) A deed of trust naming a trustee to hold title
Maria signed a deed of trust, which is the standard security instrument in Washington under RCW Chapter 61.24. In this arrangement, Maria (trustor) conveys bare legal title to a neutral trustee, while she retains equitable title and the right to occupy and use the property. The credit union is the beneficiary holding the beneficial interest.
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