finance
trustee
A trustee is a person or institution that holds legal title to property for the benefit of another. In a deed of trust, the trustee is a neutral third party who holds title for the lender, the beneficiary, until the borrower, the trustor, repays the loan; if the borrower defaults, the trustee may conduct a nonjudicial foreclosure sale. Trustees also manage property held in other trusts.
- Exam tip
- In a deed of trust, the borrower is the trustor, the lender is the beneficiary, and the trustee holds title. Exams often swap these roles to test you.
- Example
- After a borrower pays off a deed of trust, the trustee signs a deed of reconveyance returning title to the borrower.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23