Escrow & Title

What is a 'deed of trust with power of sale' in Hawaii and what does it enable?

AA. It requires the borrower to deed the property to the lender as security for the loan
BB. A security instrument giving the trustee the power to sell the property through non-judicial foreclosure if the borrower defaults, without going through court✓ Correct
CC. A deed held in trust until the purchase price is fully paid
DD. A power of attorney allowing the agent to sign deeds on behalf of the seller

Explanation

A deed of trust with power of sale is a three-party security instrument (borrower/trustor, trustee, lender/beneficiary). If the borrower defaults, the trustee may sell the property under the power of sale without court proceedings.

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