FinanceIntermediateAlaska Exam

In Alaska, a deed of trust differs from a mortgage in that a deed of trust:

ARequires judicial foreclosure in all cases, which is broadly consistent with standard practice statewide
BInvolves three parties — trustor, trustee, and beneficiary — and may allow non-judicial foreclosureCorrect
CIs only used for commercial properties
DDoes not secure real property

Why Involves three parties — trustor, trustee, and beneficiary — and may allow non-judicial foreclosure Is Correct

Answer B: Involves three parties — trustor, trustee, and beneficiary — and may allow non-judicial foreclosure

A deed of trust involves the borrower (trustor) conveying legal title to a neutral trustee who holds it for the benefit of the lender (beneficiary). If the borrower defaults, the trustee can foreclose non-judicially under the power of sale clause.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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