New Blog 1: Deed Of Trust Trustee

Tuesday 11 December 2012

Deed Of Trust Trustee

Trust relationships involve complicated legal technicalities, including confusing terminology and significant fiduciary duties. A trustee is a fiduciary of the trust relationship, and as such he must take care not to create an internal conflict of interest. Some state laws prohibit the same person or entity from acting as both the beneficiary and trustee under a deed of trust, while other states allow it. In Texas, real estate purchases that require the borrower to secure a home loan typically use the deed of trust. In a trust deed, the title remains with the trustee until the loan is paid in full or the borrower defaults. This is commonly referred to as "title theory." Texas trustees protect the interests of both the borrower and the lender, and don't become involved in the transaction until one of these events occurs.