In Arizona, the document that evidences a debt and is secured by a deed of trust is called a:
Why Promissory note Is Correct
Answer B: Promissory note
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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- In Arizona, the process by which a lender takes ownership of a property after the borrower defaults under a Deed of Trust is called:Finance
- Under a deed of trust in Arizona, who holds legal title to the property during the loan period?Finance
- The primary security instrument used in Arizona real estate transactions is the:Finance
- In an Arizona Deed of Trust, who holds bare legal title to the property?Finance
- An Arizona notice of trustee's sale for a deed of trust foreclosure must be recorded and published at least:Escrow & Title
- In Arizona, a 'deed in lieu of foreclosure' affects the borrower's credit similar to:Escrow & Title
- An Arizona real estate licensee who acts as a property manager must ensure that trust accounts used for security deposits are:Arizona License Law
- Under Arizona law, the 'deed of trust' differs from a mortgage primarily because:Escrow & Title
Key Terms to Know
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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