In NC, a deed of trust involves how many parties?
Why Three (borrower/trustor, lender/beneficiary, and trustee) Is Correct
Answer B: Three (borrower/trustor, lender/beneficiary, and trustee)
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
People Also Study
Related North Carolina Questions
- In North Carolina, the deed of trust is used instead of a mortgage. The deed of trust involves how many parties?Escrow & Title
- In a North Carolina deed of trust foreclosure, the trustee's sale is typically a:Escrow & Title
- Under NC law, a deed of trust in a non-judicial (power of sale) foreclosure must be processed through:Escrow & Title
- In NC, a 'deed of trust' has three parties while a 'mortgage' has two. In a deed of trust, the trustee's role is to:Escrow & Title
- In NC, a 'deed in lieu of foreclosure' has which disadvantage for the borrower compared to a short sale?Finance
- North Carolina allows non-judicial (power of sale) foreclosure. During this process, how long is the upset bid period after the foreclosure sale?Finance
- Under NC law, a 'foreclosure by action' (judicial foreclosure) differs from a 'power of sale foreclosure' in that:Property Ownership
Key Terms to Know
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →