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In a recent deal, the seller sought assurance post-transaction, which isn't traditional insurance but a form of security. Upon title transfer, the seller effectively becomes a lender, structuring the deal through a deed of trust or mortgage, depending on the state's regulations. This security instrument serves as a public record of the debt, protecting the seller who provides financing. In seller finance transactions, both the seller and buyer engage in this relationship, with the deed of trust finalized at the close of escrow. Additional measures may be implemented to enhance security for the seller.
