Finance

Oregon uses the deed of trust (rather than a mortgage) as the primary instrument for securing real estate loans. In an Oregon deed of trust, who are the three parties?

ABuyer, seller, and title company
BTrustor (borrower), trustee (neutral third party), and beneficiary (lender)✓ Correct
CMortgagor, mortgagee, and county recorder
DPrincipal broker, buyer's agent, and lender

Explanation

Oregon's primary security instrument is the deed of trust (ORS Chapter 86). The three parties are: (1) Trustor — the borrower who conveys title to the trustee; (2) Trustee — a neutral third party (often a title company) who holds naked legal title; and (3) Beneficiary — the lender who holds the beneficial interest.

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