Property Ownership
A 'land trust' in Idaho differs from a deed of trust because:
AThey are identical instruments
BA land trust holds title for investment or privacy purposes, while a deed of trust secures a mortgage loan✓ Correct
COnly commercial properties can use land trusts
DA land trust requires IREC approval
Explanation
A land trust (beneficial interest trust) holds title for investment or privacy purposes, with the beneficiary having personal property interests. A deed of trust is used specifically to secure a mortgage loan with the lender as beneficiary.
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Key Terms to Know
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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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