Property Ownership

A homeowner's deed of trust is an example of which type of property interest?

AFreehold estate
BLeasehold estate
CEncumbrance (lien)✓ Correct
DRemainder interest

Explanation

A deed of trust (mortgage) is a financial encumbrance — specifically a voluntary lien — placed on the property as security for the loan. Encumbrances affect the title but do not necessarily prevent transfer of the property.

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