Who holds the title in a deed of trust?

In a deed of trust, the title is held by the trustee. This arrangement is a tri-party agreement involving the borrower, the lender, and the trustee. The borrower transfers legal title of the property to the trustee as a security for the loan provided by the lender. The trustee's role is to act as a neutral third party. Their responsibility entails holding the title until the borrower fully repays the loan. This ensures that the lender has the right to foreclose on the property if the borrower defaults on the loan, but it is the trustee who holds the legal title in the interim.

The borrower does not hold the title outright while the deed of trust is active; instead, they possess equitable title, meaning they have the right to use and enjoy the property. The lender does not hold the title either; instead, they have a beneficial interest in the property as they are the ones providing the funds under the terms of the loan. The real estate agent is not involved in holding title in a deed of trust, as their role is primarily focused on facilitating the transaction and does not include holding title or fiduciary responsibilities related to the security of the loan.