Borrower grants and conveys to Trustee in trust, with power of sale, or the trustor is conveying the property to the trustee.

Borrower grants and conveys to Trustee in trust, with power of sale, or the trustor is conveying the property to the trustee.

• A. Deed of Trust
• B. Mortgage Subordination Agreement
• C. Contract for Deed
• D. Subject to Loan

Answer: (A)

In a deed of trust, the borrower (trustor) conveys legal title to a trustee to hold in trust for the benefit of the lender (beneficiary), and the document includes a power of sale. This structure creates a security instrument that allows the lender to sell the property without court action if the borrower defaults. That matches the description given: the borrower grants and conveys to a trustee in trust, with power of sale, or the trustor is conveying the property to the trustee. The other instruments don’t fit this scenario. A mortgage involves a lien on the property rather than transferring title to a trustee, and foreclosure is typically handled differently. A contract for deed keeps title with the seller until full payment is made, with the buyer gradually gaining equitable title, not a trustee holding title for the lender. “Subject to loan” refers to taking over a property while leaving the existing loan in the original borrower’s name, not a trustee arrangement securing the loan with power of sale.

In a deed of trust, the borrower (trustor) conveys legal title to a trustee to hold in trust for the benefit of the lender (beneficiary), and the document includes a power of sale. This structure creates a security instrument that allows the lender to sell the property without court action if the borrower defaults. That matches the description given: the borrower grants and conveys to a trustee in trust, with power of sale, or the trustor is conveying the property to the trustee.

The other instruments don’t fit this scenario. A mortgage involves a lien on the property rather than transferring title to a trustee, and foreclosure is typically handled differently. A contract for deed keeps title with the seller until full payment is made, with the buyer gradually gaining equitable title, not a trustee holding title for the lender. “Subject to loan” refers to taking over a property while leaving the existing loan in the original borrower’s name, not a trustee arrangement securing the loan with power of sale.