What security instrument is primarily used in Idaho real estate transactions to secure a loan?
Correct Answer
B) A deed of trust, which conveys title to a neutral third-party trustee
Idaho is primarily a deed-of-trust state. In a deed of trust, the borrower (trustor) conveys title to a neutral third-party trustee to hold on behalf of the lender (beneficiary) until the loan is repaid. While mortgages are legally permissible in Idaho, deeds of trust are predominant in practice because they allow for a faster non-judicial foreclosure process under Idaho Code § 45-1505.
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