What is a key advantage of using a deed of trust for sellers lending part of the purchase price?

Using a deed of trust offers a key advantage in terms of the foreclosure process. When a deed of trust is utilized, it involves three parties: the borrower (trustor), the lender (beneficiary), and the trustee. In the event of default by the borrower, the trustee has the authority to initiate a non-judicial foreclosure process, which is generally faster and less costly than a judicial foreclosure that might be necessary with a traditional mortgage. This streamlined process is beneficial for sellers who are providing financing, as it allows them to recover their investment more efficiently if the borrower fails to meet their obligations.

The other options, while they may have some relevance in different contexts, do not specifically highlight the uniquely expedited nature of the foreclosure proceedings associated with a deed of trust. Closing costs can vary independently of the use of a deed of trust, transfer of ownership can be complex regardless of financing methods, and interest rates are typically determined by market conditions rather than the choice of deed type. Therefore, the faster and simpler foreclosure process stands out as a distinctive advantage of using a deed of trust in real estate transactions involving seller financing.