What role does the trustor play in the deed of trust transaction?

In a deed of trust transaction, the trustor is the individual or entity that borrows funds to purchase property. This role is central to the transaction, as the trustor is essentially the borrower who is receiving the loan secured by the property being financed.

When the trustor takes out the loan, they sign the deed of trust, which serves as a security instrument for the lender. By doing this, the trustor grants a security interest in the property to a third party, known as the trustee, until the loan is fully paid. This creates a legal framework where the trustee holds the title or interest in the property for the benefit of the lender (the beneficiary) until the debt obligation is fulfilled.

This structure allows the lender to have collateral backing the loan, making it a more secure transaction for the lender while providing the trustor access to financing for their property purchase. Understanding this role is essential for grasping how real estate financing operates within the context of a deed of trust.