Property Ownership
In Illinois, a trust deed (deed of trust) is NOT commonly used because:
ATrust deeds are illegal in Illinois
BIllinois is a mortgage state (lien theory), and lenders use mortgages rather than trust deeds to secure real estate loans✓ Correct
CTrust deeds require IDFPR approval in Illinois
DTrust deeds can only be used for commercial properties in Illinois
Explanation
Illinois follows lien theory, where the borrower retains title and the lender holds a mortgage (lien) on the property as security. In title theory states, a deed of trust is used to transfer title to a third-party trustee.
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