Escrow & Title

In South Dakota, a 'deed in lieu of foreclosure' is an arrangement where:

AThe lender forecloses on the deed of trust without court action
BThe borrower voluntarily transfers title to the lender to avoid foreclosure proceedings✓ Correct
CThe court orders the deed transferred to the highest bidder
DThe buyer deeds the property back to the seller after failing to complete the purchase

Explanation

A deed in lieu of foreclosure allows a defaulting borrower to deed the property to the lender voluntarily, avoiding the time and expense of foreclosure proceedings. The lender must agree to accept it.

Related South Dakota Escrow & Title Questions

Practice More South Dakota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free South Dakota Quiz →