Asked by Ishara Ranathunga on Jun 04, 2024
Verified
A deed of trust differs from a mortgage in that the former conditionally conveys the property to a trustee for the benefit of the creditor.
Deed of Trust
A document that conveys title to real property to a trustee as security for a loan until the grantor (borrower) pays the lender according to the terms of a loan.
Mortgage
A loan secured by the collateral of real estate property, where the borrower is obliged to pay back with a predetermined set of payments.
Trustee
A person or firm that holds and administers property or assets for the benefit of a third party.
- Gain insight into the different kinds of deeds and their respective guarantees or the absence of such guarantees.
Verified Answer
DP
Deanna PerryJun 09, 2024
Final Answer :
True
Explanation :
In a deed of trust, the borrower (trustor) transfers legal title of the property to a trustee, who holds it as security for the loan on behalf of the lender (beneficiary), whereas in a mortgage, the borrower retains legal title and the mortgage serves as a lien on the property.
Learning Objectives
- Gain insight into the different kinds of deeds and their respective guarantees or the absence of such guarantees.