Which of the following best describes how a deed of trust works?

A) The borrower gives a deed to the lender to hold until the borrower satisfies the debt.
B) When a party borrows money to purchase property, the seller holds the deed until the
debt is paid off, at which point it will be conveyed to the borrower.
C) The state gives a deed to the lender to hold until the borrower satisfies the debt.
D) The borrower conveys a deed to a third party who holds legal title until the debt is paid
off or the borrower defaults.
E) When a trust is the owner of real property, a special type of deed is required.

D