Property Ownership

In Oregon, a 'purchase money deed of trust' is used to:

ARefinance an existing property
BFinance part of the purchase price of a property — the seller or a lender takes a deed of trust as security for the sale✓ Correct
CTransfer title during a 1031 exchange
DCreate a tenancy in common between buyers

Explanation

A purchase money deed of trust (PMTD) secures the financing used to purchase a property — either from a third-party lender or from the seller (seller-carried financing). PMTDs have important anti-deficiency protections in Oregon: after a non-judicial foreclosure on a PMTD securing a purchase of a residential 1–4 unit property, the lender generally cannot pursue the borrower for any deficiency.

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