Which party holds the title in a trust deed?

In a trust deed arrangement, the trustee holds the title to the property on behalf of the lender (beneficiary) until the borrower satisfies the loan obligations. This legal structure is designed to secure the loan by allowing the trustee to manage the property title, ensuring that the lender has a form of security interest in the collateral.

The trustee's role is crucial because it adds a layer of oversight and neutral management between the lender and the borrower. Should the borrower default on the loan, the trustee has the authority to initiate foreclosure proceedings, enabling the lender to recover the debt through the sale of the property. This arrangement highlights the trustee's role as a fiduciary agent, tasked with upholding the terms agreed upon in the trust deed.

Other options are incorrect because the lender is the party who benefits from the trust deed but does not hold the title; the borrower typically retains possession but does not hold title during the loan term; and a notary public's involvement is limited to witnessing signatures and verifying documents rather than holding title in a real estate transaction.