Financing documents and deeds of trust

Question 1

The lender in a deed of trust

Answer 1

Beneficiary

Question 2

A deed that a trustee signs and gives to the trustor (the borrower) to convey title back to the trustor when the loan (deed of trust) has been paid in full. Compare satisfaction of mortgage

Answer 2

Deed of reconveyance

Question 3

Failure to fulfill an obligation, duty, or promise

Answer 3

Default

Question 4

Occurs when a borrower pays off the death us voiding the deed of trust or mortgage

Answer 4

Defeasance

Question 5

The pledging of the property to be the security for a loan without giving up possession of it

Answer 5

Hypothecation

Question 6

A concept of financing where loans, such as real estate mortgages, are regarded as liens; title remains with the borrower and it’s not transferred to the lender

Answer 6

Lien theory

Question 7

An instrument that evidence is a promise to pay a specific amount of money to a specific person within a specific time frame; a written, legally binding promise to re-pay a debt

Answer 7

Promissory note

Question 8

The financing concept under which a lender holds legal title to property until the loan is repaid

Answer 8

Title theory

Question 9

A3 party security instrument that conveys bear legal title to a trustee. The borrower, call the trustor, has equitable title. The lender is the beneficiary. In Arizona, a deed of trust is the common Lane instrument because it allows the lender to order the trustee to sell the property if the trust or defaults, thereby bypassing the judicial foreclosure procedure

Answer 9

Trust deed

Question 10

And independent third-party that holds the security instrument in a deed of trust for the benefit of the lender

Answer 10

Trusty

Question 11

The borrower under a deed of trust

Answer 11

Trustor