Study for the California Escrow Exam. Dive into detailed content with flashcards and multiple choice questions, accompanied by explanations and hints. Ensure your success on test day!

Multiple Choice

Trust deeds transfer title only to which type?

In a trust deed, legal title is placed with a trustee to hold in trust for the lender, while the borrower retains equitable title and possession. That means the title involved in a trust deed is not held as full ownership by the borrower and remains in the trustee’s hands for security purposes. This arrangement is often described as dormant title, since the trustee holds the title temporarily and the borrower’s control is limited until the loan is repaid. Therefore, the transfer under a trust deed is to a dormant title. Terms like dominant title come from easement concepts and don’t describe how trust deeds work, and fee title would imply full ownership by the borrower, which a trust deed does not grant.

In a trust deed, legal title is placed with a trustee to hold in trust for the lender, while the borrower retains equitable title and possession. That means the title involved in a trust deed is not held as full ownership by the borrower and remains in the trustee’s hands for security purposes. This arrangement is often described as dormant title, since the trustee holds the title temporarily and the borrower’s control is limited until the loan is repaid. Therefore, the transfer under a trust deed is to a dormant title. Terms like dominant title come from easement concepts and don’t describe how trust deeds work, and fee title would imply full ownership by the borrower, which a trust deed does not grant.