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The maximum number of properties that can be covered by a trust deed without a blanket encumbrance is:

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Question & Answer

Review the question and all answer choices

A

three.

There is no three-property limit in California law. This misconception may arise from confusing blanket encumbrances with other types of restrictions or from outdated information about mortgage practices.

B

two.

Two properties do not constitute a blanket encumbrance by default in California. A blanket encumbrance is defined by its structure and purpose, not by an arbitrary number of properties.

C

one.

A single property trust deed is obviously not a blanket encumbrance, but the question asks about the maximum number before it becomes one, and one property is clearly not the maximum.

D

there is no limit.

Correct Answer

Why is this correct?

California law does not impose a specific numerical limit on how many properties can be covered by a single trust deed before it becomes a blanket encumbrance. The determination is based on the nature and structure of the lien rather than a fixed number of properties.

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