In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied.

In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied.

• A. Beneficiary
• B. Lender
• C. Trustee
• D. Borrower

Answer: (C)

In a deed of trust arrangement, the borrower transfers legal title to a neutral third party—the trustee—who holds title as security for the loan until the debt is paid. The lender (the beneficiary) has the beneficial interest and can direct the trustee, but the trustee actually holds the legal ownership of the property. This setup allows for non-judicial foreclosure through the trustee if the borrower defaults, and once the loan is satisfied, the trustee reconveys title back to the borrower. That’s why the correct choice is the trustee.

In a deed of trust arrangement, the borrower transfers legal title to a neutral third party—the trustee—who holds title as security for the loan until the debt is paid. The lender (the beneficiary) has the beneficial interest and can direct the trustee, but the trustee actually holds the legal ownership of the property. This setup allows for non-judicial foreclosure through the trustee if the borrower defaults, and once the loan is satisfied, the trustee reconveys title back to the borrower. That’s why the correct choice is the trustee.