What Is a Trustee in Real Estate?
A trustee is the person or entity responsible for managing real estate held in a trust according to its legal terms.
Trustee: Simple Real Estate Definition
A trustee is a fiduciary who holds legal authority over real estate placed in a trust. The trustee manages the property for the benefit of others and must follow the instructions outlined in the trust document.
What a Trustee Does in Real Estate
When a trust owns real estate, the trustee is responsible for:
- Managing and maintaining the property
- Collecting rent or income, if applicable
- Paying taxes, insurance, and expenses
- Executing deeds or transfers when permitted
The trustee must act in the best interests of the trust and its beneficiaries.
Trustee Authority Over Real Estate
A trustee’s authority comes from the trust document itself. Depending on its terms, a trustee may have the power to:
- Sell or transfer real estate
- Refinance or encumber property
- Sign a trustee’s deed
All actions must comply with the trust’s instructions and applicable state law.
Example of a Trustee
If a homeowner places their house into a living trust, the trustee becomes responsible for managing that property. If the trust later allows the home to be sold, the trustee signs the necessary documents to complete the transaction.
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Browse more definitions in our Real Estate Glossary.