Question
Question #26 of 60
In a deed of trust, the lender is
A) the trustee.
B) the trustor.
C) the mortgagor.
D) the beneficiary.
In a deed of trust, the lender is
A) the trustee.
B) the trustor.
C) the mortgagor.
D) the beneficiary.
Ask by Hammond Kirk. in the United States
Mar 31,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The lender is the beneficiary.
Solution
Step 1: Understand the definitions of the parties in a deed of trust
- The trustor is the borrower who conveys the legal title of the property to the trustee.
- The trustee holds the title in trust for the benefit of the lender.
- The beneficiary is the lender who provides the financing.
- The mortgagor is another term for the borrower in mortgage financing.
Step 2: Identify the role of the lender
In a deed of trust, the lender is not the trustee (neutral party) or the trustor/mortgagor (borrower). The lender is the party providing the funds, which makes them the beneficiary.
Step 3: Write the final answer
The lender is the:
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Simplify this solution Beyond the Answer
In a deed of trust, the lender is known as the beneficiary. Essentially, the lender benefits from the trust agreement, holding the power to take possession of the property if the borrower (the trustor) defaults on the loan. It’s a neat arrangement that keeps things organized and ensures everyone knows their role!
Now, here’s a fun twist: in a traditional mortgage setup, the lender is often referred to as the mortgagee, while the borrower is the mortgagor. It’s easy to confuse terms, but just remember - beneficial deeds can be more straightforward and give lenders more direct control through a trustee!
