Question

What is a "Deed of Trust" (also known as "Trust Deed") in real estate law?

a) A legal document that transfers ownership of property to a trustee
b) A document that grants an individual the right to live in a property for a specified period of time
c) A contract between a buyer and seller outlining the terms of a property sale
d) A document that establishes a lien on real property as security for a debt

Answer 1

A Deed of Trust is a legal document that establishes a lien on real property as security for a debt.

Step-by-step explanation:

A Deed of Trust (also known as a Trust Deed) in real estate law is a document that establishes a lien on real property as security for a debt. It is a legal agreement between a borrower, a lender, and a trustee (usually a title company or a bank) that outlines the terms and conditions of a loan and gives the lender the right to foreclose on the property if the borrower fails to meet their obligations. The Deed of Trust ensures that the lender has collateral to recover their money in case of default.