Property Ownership
In North Dakota, a 'deed of trust' differs from a mortgage in that:
AA deed of trust is used only for commercial properties
BA deed of trust involves three parties (borrower, trustee, lender) and allows non-judicial foreclosure✓ Correct
CA deed of trust has no interest rate
DA mortgage cannot be used for farmland
Explanation
In a deed of trust, the borrower conveys title to a trustee to hold as security for the lender. If the borrower defaults, the trustee can foreclose non-judicially (without court action) by selling the property.
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Key Terms to Know
Deed of Trust
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).
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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