Financing, 9% of the examination

Hypothecation

Pledging property as security for a debt without giving up possession of it.

This is exactly what a borrower does when giving a deed of trust and continuing to live in the house. It is the core idea that allows real property to secure debt at all.

See it in a question

One question from Financing, so the term lands in the context the exam uses it in.

Financing · 9%Mortgages/Deeds of Trust/Notes

California lenders overwhelmingly use a deed of trust rather than a mortgage. What practical difference matters most to a defaulting borrower?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

FinancingDeeds of trust rather than mortgages, trustee's sale rather than judicial foreclosure, and the loan brokerage rules that sit between DRE and the SAFE Act.9%Practise Financing18 questions on this area, every option explained.Practice

See it in a question

Where this is tested

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