Property Ownership
In New Mexico, which of the following is TRUE about a 'trust deed' (deed of trust)?
AIt transfers full ownership to the lender
BLegal title is held by a trustee while the beneficiary (lender) holds the beneficial interest✓ Correct
CIt is identical to a mortgage in all respects
DIt requires court action to foreclose
Explanation
In a deed of trust, the trustor (borrower) conveys legal title to a trustee who holds it for the benefit of the lender (beneficiary). Non-judicial foreclosure is possible without court action—a major distinction from a mortgage.
Related New Mexico Property Ownership Questions
- In New Mexico, a 'leasehold estate' for a fixed term (e.g., a 2-year lease) is known as a:
- In New Mexico, what document transfers the right to use and occupy property without transferring ownership?
- A New Mexico property owner who sells mineral rights but retains the surface rights has performed a:
- In New Mexico, a prescriptive easement is acquired through use of another's land that is:
- In New Mexico, the term 'appurtenance' in a deed or contract refers to:
- A life estate grants the life tenant the right to:
- Pueblo and tribal land in New Mexico is often subject to special considerations because:
- In New Mexico, 'community property' acquired during marriage is presumed to be owned equally by both spouses. An exception applies to property that is:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →