Trustee

A trustee is a person who legally holds a piece of property for another person. In real estate terms, the bank or financial company that issues the loan for the mortgage is the trustee of the property. Under a typical title transaction, the grantor or seller agrees to sell a piece of property to the grantee or buyer. The buyer gets a loan from a financial institution that agrees to pay the seller the requested amount. Ownership of the home is held in trust by the financial institution for the buyer. That means the bank is the legal holder of the property until the grantee or buyer pays off the loan. Upon full payment of the outstanding loan, the trustee will reconvey the property to the buyer and the buyer will assume all legal rights that come with the property.