What role does a trustor or trustee have in a deed of trust?

In a deed of trust, the trustor is the borrower or property owner who conveys title to the trustee, which is usually a neutral third party. The trustee holds the title to the property in trust for the benefit of the lender (the beneficiary) until the loan is paid off. This arrangement allows the lender to have a security interest in the property while providing a mechanism for foreclosure if the borrower defaults on the loan.

The limited power of sale included in the deed of trust allows the trustee to initiate non-judicial foreclosure proceedings if the trustor fails to uphold their end of the agreement, facilitating a process that can be quicker and less costly than a traditional foreclosure. Therefore, the correct answer highlights the dual role of moving title and enabling the power of sale, crucial functions in the context of securing loans with real estate. This balance promotes both the lender's interests and the borrower's ability to retain possession of the property as long as they meet their loan obligations.