Who gives the trust deed used as security for a debt?

In real estate transactions, a trust deed is a legal document used to secure a loan. The trustor is the party who borrows the money and grants the trust deed, which serves as collateral for the debt.

The trust deed involves three parties: the trustor (the borrower), the beneficiary (the lender), and the trustee (the neutral party holding the title until the debt is paid). The trustor provides the trust deed to the trustee, effectively transferring the legal title of the property to the trustee until the debt is fully satisfied. Therefore, the correct answer highlights the role of the trustor as the individual who creates and delivers the trust deed to secure their debt obligation.

The roles of the other parties clarify why the trustor is the one giving the trust deed. The beneficiary is the lender who benefits from the trust deed in securing the loan but does not provide it. The trustee acts as a neutral third party who holds the legal title and facilitates the process, but again does not provide the trust deed. The mortgagor is typically synonymous with the borrower in a mortgage agreement, but in a trust deed context, it is the trustor who specifically gives the trust deed. This distinction reinforces the understanding of these roles in real estate financing