Escrow & Title
The trustee in a North Carolina deed of trust holds:
AEquitable title for the benefit of the lender
BBare legal title in trust until the loan is repaid or foreclosure occurs✓ Correct
CBoth legal and equitable title
DNo title — it is a mere security interest
Explanation
In a deed of trust, the trustee holds bare legal title in trust for the benefit of both the borrower and the lender, releasing the title when the debt is paid or conducting a sale if the borrower defaults.
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