Trustee (Deed of Trust)
The person named or properly appointed under a deed of trust to exercise the power of sale and conduct a non-judicial foreclosure.
Quick flashcard
What does Trustee (Deed of Trust) mean on the Texas real estate exam?
Answer: The person named or properly appointed under a deed of trust to exercise the power of sale and conduct a non-judicial foreclosure.
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Trustee (Deed of Trust) definition
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 beneficiary or mortgage servicer may appoint a substitute trustee when the deed of trust allows foreclosure by power of sale. The trustee acts under the instrument and the Texas Property Code and must conduct the sale fairly.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Financing & Settlement (7 of 80 National)
From definition to recall
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