FinanceIntermediateArizona Exam

Under a deed of trust in Arizona, who holds legal title to the property during the loan period?

AThe borrower (trustor)
BThe lender (beneficiary)
CThe trusteeCorrect
DThe escrow company

Why The trustee Is Correct

Answer C: The trustee

In a deed of trust arrangement, the trustee holds bare legal title on behalf of the lender. The borrower (trustor) retains equitable title and possession of the property.

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.

Key Finance Terms in This Question

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