What legal procedure involves terminating a trustor’s rights by selling encumbered property?

The correct answer is the legal procedure known as foreclosure. Foreclosure is a process initiated by a lender when a borrower defaults on their mortgage payments. It allows the lender to reclaim the property that serves as collateral for the loan. In doing so, the rights of the trustor, or borrower, are effectively terminated as the lender sells the encumbered property to recover the unpaid debt.

This process is crucial in real estate as it emphasizes the legal implications associated with securing loans against property. The aim of foreclosure is not just to assert ownership; it serves to satisfy the outstanding balance owed on the property, ensuring that lenders can recover their investments in situations where borrowing parties can no longer meet their financial commitments.

Other options such as partitioning, replevin, and a writ of execution pertain to different legal contexts. Partitioning usually involves dividing property among co-owners, replevin relates to reclaiming personal property wrongfully taken, and a writ of execution is a court order for enforcing a judgment, often concerning debts but not specifically involving the sale of encumbered real estate. Understanding these distinctions helps clarify why foreclosure is the appropriate choice in the context of terminating a trustor’s rights through the sale of encumbered property.