Finance
What is the primary difference between a mortgage and a deed of trust?
AA mortgage uses two parties; a deed of trust uses three parties (borrower, lender, trustee)✓ Correct
BA mortgage requires a higher down payment
CA deed of trust is only used for commercial properties
DThere is no practical difference in California
Explanation
A mortgage involves two parties (mortgagor/borrower and mortgagee/lender). A deed of trust involves three parties: the trustor (borrower), the beneficiary (lender), and the trustee (neutral third party who holds title as security). California primarily uses deeds of trust.
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