Finance & Mortgages

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

The trustee holds the power of sale in a deed of trust and runs the non-judicial foreclosure. The trustee is a neutral third party, not the lender.

Exam trap

The trustee or properly appointed substitute trustee conducts a deed-of-trust foreclosure sale. The beneficiary or mortgage servicer may appoint a substitute trustee, but the sale is conducted in the trustee role.

Tested in

Financing & Settlement (7 of 80 National)

From definition to recall

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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.