What is the primary function of a trustee in a trust deed?

The primary function of a trustee in a trust deed is to hold the title until the debt is paid. This means that the trustee acts as an impartial third party who holds legal title to the property on behalf of the lender (beneficiary) and the borrower (trustor). Once the borrower fulfills their obligations under the loan agreement by making all necessary payments, the trustee will then transfer the title to the borrower, signifying that the debt has been fully paid.

Holding the title protects the interests of both parties: the lender can secure their investment, and the borrower can be assured that the title will be transferred back to them upon repayment. This role is crucial, as it provides a clear and legal process for the enforcement of the loan agreement and the transfer of property rights.

In contrast, the other options involve functions that are not typically associated with the role of a trustee in this context. The trustee does not manage the loan terms or prepare property documents directly, nor do they perform appraisals of property value. Those tasks would typically fall to the lender, the real estate professionals involved, or appraisers, rather than the trustee.