Escrow & Title

In Tennessee, a 'purchase money deed of trust' is one that is used to:

ASecure a refinance loan
BFinance the purchase of the property — typically seller financing or a contemporaneous purchase loan✓ Correct
CSecure a home equity line of credit
DFinance a construction project

Explanation

A purchase money deed of trust secures a loan made to purchase the property — either from a third-party lender or seller. It has special priority rules in Tennessee and provides certain protections.

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