Property Ownership

Under Pennsylvania law, a 'deed of trust' differs from a standard mortgage primarily in that:

APennsylvania exclusively uses deeds of trust for all residential mortgage lending
BA deed of trust involves three parties — trustor, trustee, and beneficiary — while a Pennsylvania mortgage involves two parties✓ Correct
CDeeds of trust are only used for commercial real estate transactions in Pennsylvania
DA deed of trust does not create a lien on the real property securing the loan

Explanation

Pennsylvania primarily uses mortgages — two-party instruments between mortgagor (borrower) and mortgagee (lender) — rather than deeds of trust for residential financing. A deed of trust involves three parties: the trustor (borrower), a neutral trustee who holds title as security, and the beneficiary (lender). Deeds of trust enable non-judicial trustee's sale foreclosure in many states. Because Pennsylvania requires judicial foreclosure, standard mortgages are the norm here rather than deeds of trust.

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