Who is referred to as the trustor in a deed of trust loan transaction?

In a deed of trust loan transaction, the trustor is the individual or entity that creates the trust and is typically the borrower. This party conveys an interest in real property to a trustee as collateral for a loan. The trustor retains the rights to the property, while the trustee holds the title until the loan is repaid or the trust is terminated, thus serving as a safeguard for the lender.

Understanding the roles within a deed of trust is essential. The lender, often referred to as the beneficiary, is not the trustor; they are the party that benefits from the loan proceeds. The trustee is the intermediary who manages the trust and ensures that both the trustor and beneficiary's rights are upheld. Recognizing these roles is crucial for grasping how deed of trust transactions function and the responsibilities each party holds in this legal arrangement.