Property Ownership

In New Mexico, 'naked legal title' in a deed of trust refers to:

AA defective title
BThe bare legal title held by the trustee, without the beneficial enjoyment✓ Correct
CA title with no encumbrances
DA title held by a trust company

Explanation

In a deed of trust, the trustee holds 'naked' legal title—title without beneficial rights. The trustor (borrower) retains equitable title (the right to use and enjoy the property), and the lender holds the beneficial interest.

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