CH. 10 Deed of Trust

2. A deed given as security for the loan against real estate is known as

A. A trust deed.

25. The beneficiary's right, upon default, to take physical possession and collect income generated by the property is called

A. Assignment of rents

11. When a property is financed by means of a deed of trust, to whom are the payments made?

A. Beneficiary

8. Who is the trustor in a deed of trust?

A. Borrower

5. One of the main differences between a regular mortgage and a deed of trust is.

A. The number of parties

10. The borrower under a deed of trust arrangement is called the

A. Trustor

7. The borrower under a deed of trust is called the

A. Trustor

13. When a loan is secured by deed of trust, the promissory note is held by the

A. beneficiary

29. When a person signs a note with no guarantee to the person receiving it, he is said to be signing it

B. Without recourse.

30. One of the major differences between a regular mortgage and a deed of trust is

C. The redemption period allowed.

16. A deed of trust conveys naked title to the

C. Trustee

19. Under a deed of trust, reconveyance is issued by the

C. Trustee

21. A deed for reconveyance would be signed by the

C. Trustee

22. Who must sign the reconveyance of a deed of trust?

C. Trustee

20. Upon payment of the debt secured by a deed of trust, the

C. Trustee issues a release deed for reconveyance.

23. Upon payment of the debt secured by a deed of trust, the

C. Trustee issues a release deed for reconveyance.

9. A trustor's relationship to a beneficiary is most nearly the same as a

D. Mortgagor to a mortgagee

27. Under a deed of trust on real property, the trustee is

B. Empowered to foreclose, upon notice of default, by a trustee's sale of the property.

24. When default is declared on a loan secured by deed of trust, which of the following is true?

B. The successful bidder at the trustee's sale receives a trustee's deed at the time of sale.

1. A neutral third party would be found in

C. A deed of trust.

4. A newly recorded trust deed

C. Establishes a voluntary lien.

15. The trustee of a deed of trust

C. Has naked title

26. A borrower defaults on a deed of trust loan. Before the lender can foreclose, the lender must

C. Notify the borrower, trustee

17. A trustor's relationship to a beneficiary is most nearly the same as a

D. Mortgagor to a mortgagee.

28. After a trustee's sale has been held and the property goes to the highest bidder, in most states the original trustor has

D. No recourse.

14. With regard to a deed of trust, the trustee

D. Receives naked title

3. A trust deed can be used for all of the following except

D. Secure a mortgage

6. The instrument which conveys naked title to a trustees is the.

D. Trust deed

18. When a debt secured by a deed of trust is paid off, naked legal title reverts to the borrower from the

D. Trustee

12. A trustor's relationship to a beneficiary is most nearly the same as a

D. mortgagor to a mortgagee.