Property Ownership
Under NJ law, a 'trust deed' (deed of trust) is sometimes used instead of a mortgage to secure a real estate loan. In a trust deed arrangement, who holds legal title to the property?
AThe borrower (trustor)
BA neutral third-party trustee, with the borrower holding equitable title✓ Correct
CThe lender (beneficiary)
DThe title company
Explanation
In a deed of trust (used less commonly in NJ but sometimes in commercial transactions), the borrower (trustor) conveys legal title to a neutral trustee to hold as security for the lender (beneficiary). The borrower retains equitable title and possession.
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