Escrow & Title
What is an assignment of rents clause in a Nevada deed of trust?
AA clause assigning the tenant's rights to the buyer
BA clause allowing the lender to collect rents directly from tenants if the borrower defaults on the deed of trust✓ Correct
CA clause assigning the purchase price to the seller
DA clause transferring the tenant's lease to a new owner
Explanation
An assignment of rents clause gives the lender the right to collect rental income directly from tenants if the borrower defaults on the loan. This protects the lender's cash flow security in income-producing Nevada properties used as collateral.
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