Under what kind of deed is the legal title of a property held in trust for the lender until repayment is made?

The correct answer is a deed of trust. This type of deed establishes a trust relationship wherein the borrower transfers the legal title to a property to a trustee. The trustee holds the title on behalf of the lender (the beneficiary) until the borrower repays the loan in full. Once the loan is satisfied, the trustee returns the legal title to the borrower.

In this arrangement, the lender has a secured interest in the property, providing them a form of protection. If the borrower defaults on the loan, the trustee can initiate foreclosure proceedings to sell the property and repay the lender. This system facilitates the lending process, ensuring that both parties have clear responsibilities and legal protections.

The other options refer to different types of deeds that do not involve a trust arrangement for holding property title in relation to a lender's security interest. A land court deed pertains to properties registered in certain jurisdictions and does not function like a deed of trust. An exchange deed is used typically for transferring property ownership between parties without a monetary exchange. A confirmatory deed is used to clarify or confirm a previous deed and does not involve the holding of title in trust for the lender.