Michael obtains a deed of trust from TrustBank to secure his loan for purchasing a property. Under the intermediate mortgage theory, who holds legal title to the property during Michael's loan term?
Under the intermediate mortgage theory, a trustee holds legal title to the property on behalf of the lender until the loan is repaid. The borrower retains equitable title, while the trustee acts as an intermediary holding legal title.
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What is a deed of trust?
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What is the role of the trustee in a deed of trust?
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What is meant by equitable title and how does it relate to a deed of trust?