Trustee (Deed of Trust)
The neutral third party named in a Texas deed of trust who holds the power of sale and conducts a non-judicial foreclosure if the borrower defaults.
In a Texas deed of trust, the trustee is the neutral third party who holds the power of sale for the benefit of the lender. The trustee has no role unless the borrower defaults. On default, the trustee carries out the non-judicial foreclosure: giving the required notices, posting and filing notice of sale, and conducting the public sale.
The lender may appoint or substitute a trustee. The trustee acts under the terms of the deed of trust and the Texas Property Code and must conduct the sale fairly. The trustee is not the lender and is not the borrower.
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- Deed of Trust
The Texas security instrument that pledges real property for a loan and lets a trustee sell it non-judicially if the borrower defaults.
- Non-Judicial Foreclosure
Foreclosure conducted by the trustee under a deed of trust's power of sale, without a court action, on the first Tuesday of the month in Texas.
- Foreclosure
The process by which a lender forces the sale of property after default. Texas usually uses non-judicial foreclosure under a deed of trust.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.