Final answer:
The power-of-sale clause in a deed of trust authorizes the trustee, usually a neutral third party like a title company or an attorney, to sell the property in the event of a loan default by the borrower.
Step-by-step explanation:
A power-of-sale clause in a deed of trust generally grants the authority to conduct the sale of a property to a trustee. This clause is activated under certain conditions, typically default on loan payments by the borrower. Upon activation, the trustee then has the legal right to sell the property without the need for court intervention, with the intention of using the proceeds to pay off the remaining loan balance owed to the lender. This is a nonjudicial foreclosure process and can be quicker than a judicial foreclosure, which requires court involvement. The trustee is typically a neutral third party, such as a title company or an attorney, appointed to manage the trust's assets in the best interest of the beneficiary, which in this case is the lender.