Escrow & Title
Maryland's Indemnity Deed of Trust is used primarily for:
ATransferring ownership of property to a trust
BSecuring a line of credit or other contingent obligation on real property✓ Correct
CEstablishing a leasehold interest
DCreating a life estate
Explanation
An Indemnity Deed of Trust in Maryland secures a contingent or future obligation (such as a guaranty or line of credit) and is recorded as a lien against the property.
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- In Maryland, a deed of trust is used instead of a traditional mortgage in some transactions. The primary difference is that:Escrow & Title
- A Maryland property has an IRS tax lien recorded against the seller. This lien must be:Escrow & Title
- In Maryland, a property with a 'deed of trust' versus a 'mortgage' — in both cases, what secures the loan?Finance (alternative)
- A homeowner in Maryland sells their property subject to a deed of trust. The deed of trust is an example of what type of encumbrance?Property Ownership
- Maryland imposes a recordation tax when a deed is recorded. Who typically pays this tax?Escrow & Title
- A deed of trust in Maryland involves how many parties?Property Ownership
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Life EstateA freehold interest in real property that lasts only for the duration of a specified person's life.
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