Property Ownership
In Tennessee, a 'naked title' (bare legal title) held by a trustee under a deed of trust means:
AThe trustee owns the property outright
BThe trustee holds legal title only as a neutral party — the beneficial owner remains the borrower✓ Correct
CThe title has no encumbrances
DThe title is unrecorded
Explanation
In a Tennessee deed of trust, the trustee holds 'bare' or 'naked' legal title only as a neutral security holder for the benefit of the lender. The borrower retains equitable title and all beneficial ownership rights. The trustee can only act to foreclose if the borrower defaults.
Related Tennessee Property Ownership Questions
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- A Tennessee property owner's 'bundle of rights' includes the right to encumber the property. This means the owner may:
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