What is typically found in a deed of trust?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A deed of trust is a legal document that secures a loan by establishing a lien on a property. It typically includes the terms of the loan, such as the amount borrowed, the interest rate, repayment terms, and any specific obligations of the borrower. Additionally, a deed of trust delineates the property being secured, ensuring that the lender has a right to the property if the borrower defaults on the loan. This means that the correct answer focuses on the essential elements that make up a deed of trust, which includes both the financial terms of the loan and the security provided by the property.

While other elements may be relevant in real estate transactions, such as the relationship between the buyer and seller or property improvements, these factors are not a focus of a deed of trust. Instead, its primary function is to protect the lender’s interest in the property through the outlined loan terms and security measures.

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