Property Ownership
What is a 'trust deed' (deed of trust) and how does it differ from a mortgage in Delaware?
AThey are legally the same in Delaware; both terms describe real property security instruments
BA deed of trust involves three parties (borrower, trustee, beneficiary-lender); a mortgage involves two parties (borrower and lender). Delaware primarily uses mortgages✓ Correct
CA deed of trust is only for commercial property; a mortgage is for residential
DA deed of trust requires court foreclosure; a mortgage allows non-judicial foreclosure
Explanation
A deed of trust involves three parties: the trustor (borrower), trustee (neutral third party holding title), and beneficiary (lender). Delaware primarily uses the two-party mortgage instrument. In a mortgage, the borrower retains title and the lender holds a lien.
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