Under a ________,the mortgagor conveys his or her interest in the property to a disinterested third party,known as a trustee.

Question

Quizplus · Accepted Answer

A deed of trust involves the mortgagor conveying their interest in the property to a third party, known as a trustee. This third party holds onto the title until the mortgage is paid off, at which point they release the title back to the mortgagor. This differs from a traditional mortgage in which the mortgagor retains the title while the lender has a lien on the property. The other options, a security agreement and subordination agreement, are not related to the conveyance of property titles, while "mortgage" could potentially be correct but is not as specific as "deed of trust" in describing the scenario described in the question.

Under a ________,The Mortgagor Conveys His or Her Interest in the Property