California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

A declaration of default is a legal document that is sent when a borrower has failed to make loan payments as outlined in a trust deed. The declaration of default is typically sent by the beneficiary, who is the lender or the party who issued the loan, to the trustee. This document notifies the trustee that the borrower is in default and initiates the process of foreclosure on the property. Options B, C, and D are incorrect because they refer to incorrect parties involved in the loan default process. The declaration of default is not sent by the trustee to the beneficiary, as the trustee is responsible for carrying out the foreclosure process on behalf of the beneficiary. The borrower also does not send a declaration of default to the trustee, as it is the beneficiary who is taking legal action. And finally, the lender would not send a declaration of default to the borrower, as it is the borrower who is in default and already aware of the situation.