A trustee is the person or entity that holds legal title to property in a trust arrangement, managing it according to the trust agreement for the benefit of the beneficiaries. The trustee has a fiduciary duty — the highest standard of care in law — to act in the beneficiaries' best interests, follow the trust's terms, manage trust property prudently, keep accurate records, and avoid self-dealing or conflicts of interest.
In real estate, trustees appear in two main contexts. First, in a deed of trust arrangement (used in many states instead of a mortgage), the trustee is a neutral third party who holds bare legal title as security for the loan. Their primary roles are to execute a reconveyance when the loan is paid in full (releasing the lien) or to conduct a foreclosure sale if the borrower defaults. The deed of trust trustee is typically a title company, attorney, or designated trustee company.
Second, in a living trust, land trust, or other property-holding trust, the trustee manages the real property according to the trust agreement. For a revocable living trust, the trustor often serves as their own trustee during their lifetime. For land trusts, the trustee is typically a bank, title company, or attorney who holds title on behalf of the beneficiary. The trustee can buy, sell, and mortgage property — but only as authorized by the trust agreement.
At closing, the title company must verify the trustee's identity and authority. If the trustee is selling property, the title company reviews the trust agreement (or certification of trust) to confirm: the trust exists and has not been terminated, the trustee is currently serving (and has not been removed or replaced), the trustee has the power to sell real property, and there are no restrictions that would prevent the sale. If the trustee is buying, the title company ensures the deed correctly identifies the trustee and trust.
At Beycome Title, we handle trustee transactions with thoroughness and care. Whether you are a trustee selling property from an estate, purchasing into a land trust, or closing a loan secured by a deed of trust, our team ensures all trust documentation is properly reviewed and all requirements are met. Get your free closing quote.