Question

To purchase a house, Leo borrows funds from Metro Bank for a home in California. To secure the lender, the loan terms will provide the Metro Bank will be protected by a document recorded against the property. The recorded document will be:_____________.

a. a Deed of Trust.
b. a down payment.
c. a short sale.
d. predatory lending.

Answer 1

A) a Deed of Trust

Step-by-step explanation:

A deed of trust is a legal contract by which the borrower (in this case Leo) transfers the ownership of his property to a third party, called the trustee, until the total amount of the loan is paid back to the lender (in this case Metro Bank). The trustee is allowed to sell the property in case the borrower doesn't pay back the loan.