Property Ownership
In Maine, a 'deed of trust' is:
ACommonly used instead of a mortgage
BNot used in Maine; Maine uses mortgages rather than deeds of trust✓ Correct
CUsed only for commercial properties
DThe same as a warranty deed
Explanation
Maine is a mortgage state, not a deed of trust state. Maine uses mortgage instruments (not deeds of trust) to secure real property loans.
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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).
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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