What is the primary security instrument used in Montana real estate transactions?
Correct Answer
B) Deed of trust, with a trustee holding legal title until the loan is repaid
Montana is a deed of trust state. In a deed of trust, the borrower (trustor) conveys legal title to a neutral third party (trustee) to hold on behalf of the lender (beneficiary) until the loan is fully repaid. Upon payoff, the trustee reconveys title to the borrower. This arrangement allows for a non-judicial foreclosure process in Montana, which is generally faster than judicial foreclosure used in mortgage states.
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