Oregon 30-Hour Real Estate Law Practice Test

In which situation is a property's conveyance most likely to occur with a trustee's deed?

1. When the owner is selling the property voluntarily

2. When the property is passed through an estate

3. When the property will be sold at auction in a foreclosure action

4. When the mortgage is paid off

The correct answer is: When the property will be sold at auction in a foreclosure action

A trustee's deed is commonly used in situations where property is conveyed under the authority of a trustee, specifically in the context of foreclosure actions. When a property is sold at auction due to foreclosure, it is typically the trustee who executes the deed to transfer ownership to the highest bidder. This deed serves as formal documentation that confirms the transfer of title from the foreclosed property owner to the new owner following the auction. In the context of the other options, they represent different scenarios that do not typically involve a trustee's deed. Selling a property voluntarily usually requires a warranty deed or a quitclaim deed, reflecting the voluntary nature of the transaction. Passing property through an estate generally involves an executor's deed or administrator's deed, depending on how the estate is managed. Paying off a mortgage typically results in the issuance of a satisfaction of mortgage and does not necessitate a trustee’s deed, since the property remains with the original owner. Thus, the situation where a trustee's deed is most applicable is during a foreclosure auction, where the trustee is empowered to act on behalf of lenders to transfer the property after a foreclosure.