Escrow & Title
In Arizona, the document that evidences a debt and is secured by a deed of trust is called a:
ADeed of trust
BPromissory note✓ Correct
CMortgage
DTrustee's deed
Explanation
A promissory note is the evidence of the debt (the borrower's promise to repay). The deed of trust is the security instrument pledging the property as collateral.
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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
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Key Terms to Know
Deed of Trust
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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