What are the three parties involved in a trust deed?

In the context of a trust deed, the three parties involved are the trustor, trustee, and beneficiary. The trustor is the individual or entity that borrows money and creates the trust deed as security for the lender. The trustee is a neutral third party who holds the legal title to the property on behalf of the beneficiary until the loan is repaid. The beneficiary is typically the lender or financial institution that provides the loan to the trustor and is entitled to be repaid under the terms of the trust deed.

This relationship is crucial because it establishes a security interest in the property for the lender while ensuring that the borrower still retains certain rights to the property. By having these three distinct roles, the trust deed system provides clarity and protection for all parties involved in the lending process, particularly in case of default, where the trustee may sell the property to satisfy the loan.