Finance
What is the purpose of a deed of trust in Virginia real estate transactions?
ATo transfer title directly to the lender
BTo establish a three-party security instrument using a trustee to hold title✓ Correct
CTo guarantee the buyer's down payment
DTo replace the purchase and sale agreement
Explanation
In Virginia, a deed of trust is a security instrument where title is held by a neutral trustee. If the borrower defaults, the trustee can conduct a non-judicial foreclosure sale.
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