Maria is purchasing a home in Omaha and her lender requires a security instrument to be placed on the property. The closing attorney explains that three parties will be named in the document. Which three parties are correctly identified under Nebraska's Trust Deeds Act?
Correct Answer
D) Trustor, trustee, and beneficiary
Under the Nebraska Trust Deeds Act (Neb. Rev. Stat. § 76-1002), a deed of trust involves exactly three parties: the trustor (the borrower/property owner who conveys title), the trustee (a neutral third party, often a title company or attorney, who holds legal title), and the beneficiary (the lender who holds the beneficial interest). This three-party structure is the defining characteristic of a deed of trust and distinguishes it from a mortgage.
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