A Nevada real estate licensee is explaining deeds of trust to a client. Which of the following statements about Nevada deeds of trust is NOT accurate?
Correct Answer
A) The trustee is typically an agent of the beneficiary and acts exclusively in the lender's interest
Option C is NOT accurate. The trustee in a Nevada deed of trust is NOT an agent of the beneficiary and does not act exclusively in the lender's interest. The trustee is a neutral third party who holds bare legal title for the benefit of both the trustor and the beneficiary. The trustee's role is to act impartially and in accordance with the terms of the deed of trust and Nevada law (NRS Chapter 107). Acting exclusively in the lender's interest would violate the trustee's neutral fiduciary role.
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