Question

Which of the following is (are) correct concerning the parties of a trust deed?1. The trustee has naked title2. The lender is named the beneficiary3. The trustor has legal title

Answer 1

1. The trustee has naked title
2. The lender is named the beneficiary
3. The trustor has legal title

Step-by-step explanation:

A Trust deed is a legal agreement that allows for a debtor to transfer ownership of a physical real estate property to a Trustee so that that trustee may hold the property as security for a loan transaction involving the lender and the debtor.

The trustee in this agreement holds a naked title which is a legal title to a property that is given to a trustee as it has no ownership benefits. The beneficiary is also named to be the lender and the Trustor retains the legal title.