What does a deed of trust primarily represent in a real estate transaction?

In a real estate transaction, a deed of trust primarily serves as a security instrument that signifies a legal claim against the property. It functions similarly to a mortgage, wherein the borrower conveys an interest in their property to a trustee, who holds it for the benefit of the lender until the debt is satisfied. If the borrower defaults on their loan payments, the trustee can initiate a foreclosure process to recover the outstanding debt by selling the property.

This means the deed of trust not only indicates the borrower's obligation to repay the loan but also establishes the lender's right to the property should the borrower fail to meet their repayment responsibilities. While it contains elements related to the promise to repay (associated with the loan agreement) and provides a framework for handling payment transactions, its primary purpose is to create a legal claim against the property. Therefore, it accurately reflects the secured interest of the lender and the risk associated with lending, making choice B the most appropriate representation of a deed of trust's role in a real estate transaction.