Question

The document which need to be recorded to change the trustee under a deed of trust is called a:

1) substitution of liability
2) substitution of trustee
3) trustee indemnity
4) beneficial assignment
5) substitution of collateral

Answer 1

The document required to change the trustee under a deed of trust is known as a 2) substitution of trustee.

Step-by-step explanation:

When there is a need to change the trustee under a deed of trust, the document that is recorded to make this change is known as a substitution of trustee. This document is a legal formality that transfers the authority and duties from the outgoing trustee to the newly appointed trustee. The purpose of a substitution of trustee is to ensure that the trust's administration can continue without interruption, and it provides public notice of the change in trustee.

A substitution of trustee is typically handled by the lender or the beneficiary under the deed of trust. Once signed, this document must be recorded with the county recorder or other appropriate government office where the property is located to become effective and to maintain a proper chain of title for the property.

It is important to note that the other options mentioned, such as substitution of liability, trustee indemnity, beneficial assignment, and substitution of collateral, are separate and distinct terms that deal with different aspects of trust and property law.