FinanceIntermediateDelaware Exam

In Delaware, what is a deed of trust used for?

ATransferring ownership of property to a trust
BSecuring a mortgage loan using the property as collateral with a trusteeCorrect
CEstablishing a living trust for estate planning
DRecording a boundary line agreement

Why Securing a mortgage loan using the property as collateral with a trustee Is Correct

Answer B: Securing a mortgage loan using the property as collateral with a trustee

A deed of trust is a security instrument used in some states (though Delaware primarily uses mortgages) where the borrower conveys title to a trustee to hold as security for a lender's loan.

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

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.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

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