what does trustee mean in real estate
Best answer
A trusteemanages property that is held in trust. A trust is an arrangement in which one person holds the property of another for the benefit of a third party,called the beneficiary. The beneficiary is usually the owner of the property or a person designated as the beneficiary by the owner of the property.
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What is the role of a trustee in real estate?
In real estate, a trustee is appointed by a lender so in the event that a property needs to be foreclosed, the trustee can take charge of arranging the sale and forwarding the proceeds to the lender. With private trusts, trustees are appointed to manage the assets in the trust and distribute them as directed under the terms of the trust.
What is a trustee of a trust called?
A trustee is any type of person or organization that holds the legal title of an asset or group of assets for another person, referred to as the beneficiary. A trustee is granted this type of legal title through a trust, which is an agreement between two consenting parties.
What is the difference between a deed of trust and trustee?
A trustee in real estate isn’t the same as a person acting for and managing a living trust. Some states, such as California, use a deed of trust to ensure payment of home loans instead of a mortgage. … The trustee holds legal ownership of the borrower’s home in trust until the loan is paid off.
How does a trustee hold the legal title to a property?
The trustee holds the legal title until the borrower pays the debt in full, at which point the title to the property becomes the borrower’s. If the borrower defaults on the loan, the trustee takes full control of the property.