Bryan purchased a home in Lehi, Utah with seller financing. The seller, Patricia, agreed to carry the loan and used a trust deed to secure her interest. Bryan later defaulted on payments. Patricia wants to foreclose but her attorney advised that Patricia cannot serve as both the beneficiary and the trustee in the same trust deed. Which party should Patricia appoint to act as trustee to properly conduct a non-judicial foreclosure?
Correct Answer
C) A neutral third party such as a title company or attorney authorized under Utah law
Under Utah Code Ann. § 57-1-21, the trustee in a trust deed must be a neutral third party separate from both the trustor (borrower) and the beneficiary (lender). Eligible trustees include title insurance companies, attorneys licensed in Utah, banks, and other entities authorized by statute. The trustee must be independent so they can act impartially when exercising the power of sale. Patricia, as the beneficiary, cannot simultaneously serve as trustee.
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