The maximum number of properties that can be covered by a trust deed without a blanket encumbrance is:
Question & Answer
Review the question and all answer choices
three.
Three properties is not a legally established maximum for trust deeds under California law; this number has no statutory basis and may mislead students into thinking a specific numerical cap exists.
two.
Two properties is similarly not a statutory limit; while a trust deed covering exactly two properties would be classified as a blanket encumbrance, there is no rule that prohibits a trust deed from covering more than two properties.
one.
One property is not the maximum a trust deed can cover; while a single-property trust deed is the most common arrangement, California law explicitly recognizes and regulates multi-property trust deeds (blanket encumbrances) rather than prohibiting them.
there is no limit.
Why is this correct?
California law does not impose any maximum number of properties that a single trust deed can encumber; a trust deed can cover one property or many properties without legal restriction on the count. When a trust deed covers more than one parcel, it is classified as a blanket encumbrance under California Business and Professions Code § 11013, which triggers additional disclosure and release requirements, but the instrument itself is not prohibited regardless of how many properties it covers.
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