Deck 9: Deed of Trust

Question 1

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

A) grantor to a grantee.
B) beneficiary to a trustee.
C) buyer to a seller.
D) mortgagor to a mortgagee.

Answer 1

D
A trustor's relationship to a beneficiary is most nearly the same as a mortgagor to a mortgagee.

Question 2

A neutral third party would be found in

A) a regular mortgage.
B) an equitable mortgage.
C) a deed of trust.
D) a land sale contract.

Answer 2

C
A neutral third party found in a deed of trust an known as the trustee.

Question 3

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

A) mortgagee.
B) trustor.
C) beneficiary.
D) trustee.

Answer 3

D
When a debt secured by a deed of trust is paid off, naked legal title reverts to the trustee.

Question 4

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

A) trustor issues a deed for reconveyance.
B) grant deed is issued to the trustee.
C) trustee issues a release deed for reconveyance.
D) trustor now has equitable title.

Question 5

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

A) a trust deed.
B) illegal consideration.
C) usury.
D) hypothecated.

Question 6

The borrower under a deed of trust is called the

A) trustor.
B) beneficiary.
C) trustee.
D) grantor.

Question 7

The trustee of a deed of trust

A) may be the beneficiary.
B) may bid at the foreclosure sale.
C) has naked title.
D) always knows of his appointment.

Question 8

A newly recorded trust deed

A) conveys the entire estate to the grantee.
B) always allows a deficiency judgement.
C) establishes a voluntary lien.
D) conveys title superior to a quitclaim deed.

Question 9

With regard to a deed of trust, the trustee

A) can be the beneficiary.
B) receives recorded title.
C) receives equitable title.
D) receives naked title.

Question 10

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

A) grantor to a grantee.
B) beneficiary to a trustee.
C) buyer to a seller.
D) mortgagor to a mortgagee.

Question 11

Who is the trustor in a deed of trust?

A) Borrower
B) Lender
C) Grantor
D) Vendor

Question 12

A trust deed can be used for all of the following EXCEPT

A) transfer of title.
B) hypothecate property.
C) secure a note.
D) secure a mortgage.

Question 13

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

A) the number of parties.
B) rights of possession.
C) recording.
D) ownership.

Question 14

Under a deed of trust, reconveyance is issued by the

A) beneficiary.
B) trustor.
C) trustee.
D) borrower.

Question 15

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

A) grantor to a grantee.
B) beneficiary to a trustee.
C) buyer to a seller.
D) mortgagor to a mortgagee.

Question 16

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

A) Beneficiary
B) Trustor
C) Trustee
D) Grantee

Question 17

A deed of trust conveys naked title to the

A) beneficiary.
B) trustor.
C) trustee.
D) escrow officer.

Question 18

The instrument which conveys naked title to a trustee is the

A) notice of default.
B) reconveyance deed.
C) guardian's deed.
D) trust deed.

Question 19

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

A) beneficiary.
B) trustor.
C) trustee.
D) grantee.

Question 20

The borrower under a deed of trust arrangement is called the

A) trustor.
B) beneficiary.
C) trustee.
D) holder in due course.

Question 21

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

A) with recourse.
B) without recourse.
C) in blank.
D) jointly and severally.

Question 22

Upon default by the borrower under a deed of trust, the trustor issues a notice of default.

Question 23

A trust deed can be used to secure a mortgage.

Question 24

In a real estate transaction financed with a deed of trust, the real property is conveyed by the deed of trust.

Question 25

The borrower receives naked title under a deed of trust.

Question 26

The funds for a loan secured by a deed of trust are supplied by the beneficiary.

Question 27

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

A) the owner of record of the property covered by the deed of trust.
B) empowered to foreclose, upon notice of default, by a trustee's sale of the property.
C) the equitable owner of the property.
D) the holder of the grant deed.

Question 28

A mortgage can be foreclosed judicially.

Question 29

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

A) assignment of rents.
B) reconveyance.
C) power of sale.
D) the trustee has the right, not the beneficiary.

Question 30

In a real estate transaction financed with a deed of trust, the grantee on the deed of trust is the borrower.

Question 31

A deed for reconveyance would be signed by the

A) beneficiary.
B) trustor.
C) trustee.
D) grantee.

Question 32

Who must sign the reconveyance of a deed of trust?

A) Beneficiary
B) Trustor
C) Trustee
D) Grantee

Question 33

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

A) offer to modify the loan terms to allow the borrower to catch up.
B) appoint a trustee if the deed of trust is of the automatic trustee form.
C) notify the borrower, trustee and all interested parties of the default.
D) advertise the sale several weeks in advance and perform the sale himself, on the site of the property securing the loan.

Question 34

A deed of trust lien, when paid in full, is released by the recording of a reconveyance deed.

Question 35

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

A) The trustee must sell the property at a private sale.
B) The successful bidder at the trustee's sale receives a trustee's deed at the time of sale.
C) The defaulting borrower has a one year period of redemption after the trustee's sale.
D) After a year, the successful bidder at the trustee's sale receives a trustee's deed.

Question 36

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

A) 21 days to pay off the loan balance.
B) 90 days equity of redemption.
C) one year to redeem the property.
D) no recourse.

Question 37

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

A) trustor issues a deed for reconveyance.
B) grant deed is issued to the trustee.
C) trustee issues a release deed for reconveyance.
D) trustor now has equitable title.

Question 38

A deed of trust can never be foreclosed judicially.

Question 39

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

Question 40

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

A) a mortgage hypothecates personal property.
B) a deed of trust must be recorded.
C) the redemption period allowed.
D) there is no difference.

Question 41

The trustee in a deed of trust is a neutral ____________________ party.

Question 42

The right to collect rents in the event of default is called a(n)____________________ of ____________________ clause.

Question 43

Under a deed of trust the borrower is known as the ____________________.

Question 44

Mortgages are the same as trust deeds in that foreclosure is the cure for default.

Question 45

The title that the borrower grants to the trustee is referred to as "naked title".

Question 46

Proceeds from a foreclosure sale go first to the lender, then to the borrower and then to the expenses of the sale.

Question 47

When the debt is paid off the lender sends to the trustee the note, the deed of trust and a request for ____________________.

Question 48

The title that the borrower grants to the trustee is sometimes called ____________________ or ____________________ title.

Question 49

If an owner pays the full amount of the debt just before his property is sold at auction, he is probably exercising his right of redemption.

Question 50

Regarding the non-judicial foreclosure of a deed of trust, the property is sold at auction.

Question 51

In a deed of trust, if the borrower defaults, the lender can take possession of the property and collect the rents.

Question 52

Under the ____________________ of ____________________ clause, if the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser.

Question 53

After the expenses of the sale are paid in a foreclosure sale, the ____________________ is paid.

Question 54

The presence of a power of sale right prohibits the trustee from using a court-ordered foreclosure.

Question 55

The basic purpose of the deed of trust is the same as a mortgage.

Question 56

Under a deed of trust, the lender is known as the ____________________.

Question 57

In the automatic form of trusteeship, the trustee is named in the deed of trust but is not personally notified of the appointment.

Question 58

The basic purpose of the deed of trust, also referred to as a trust deed, is the same as a ____________________.

Question 59

One major advantage of a deed of trust over a mortgage is the time between default and foreclosure is relatively short.

Question 60

If the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser with a ______________________________.

Question 61

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
the lender's right to take possession and collect rents in the event of loan default

Question 62

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
a publicly appointed official who acts as a trustee in some states

Question 63

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
a three party arrangement involving a trustor, trustee, and beneficiary

Question 64

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
usually not allowed once the foreclosure sale takes place

Question 65

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
the trustee is named in the deed of trust but not personally notified of the appointment

Question 66

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
transfers title from the trustee to the trustor

Question 67

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
what the trustee issues to the borrower;also known as a reconveyance deed

Question 68

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
one who creates a trust;the borrower under a deed of trust

Question 69

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
the process of selling the mortgaged property allowed under the deed of trust

Question 70

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
any claim behind a first lien

Question 71

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
one who holds property in trust for another

Question 72

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
a clause in a deed of trust that gives the trustee the right to conduct a foreclosure sale without first going to court

Question 73

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
conveys to the purchaser at foreclosure the right, title, and interest held by the trustee

Question 74

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
violation of any of the terms of the deed of trust

Question 75

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
the lender

Question 76

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
the trustee is notified in advance and either accepts or rejects the appointment

Question 77

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
the beneficiary's request to the trustee to deed the secured property to the trustor

Question 78

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
title in a legal sense only and without the usual rights of ownership

Question 79

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
title that the borrower grants to the trustee;also known as naked title.

Question 80

Choose the one most appropriate answer for each.
a.accepted form
k.no statutory redemption
b.assignment of rents
l.power of sale
c.automatic form
m.public trustee
d.bare title
n.reconveyance deed
e.beneficiary
o.release deed
f.deed of trust
p.request for reconveyance
g.default
q.trust
h.foreclosure
r.trustee
i.junior claims
s.trustee's deed
j.naked title
t.trustor
a document that conveys legal title to a neutral third party as security for a debt