PSI Virginia Real Estate Practice Exam

What does a Trustee's Deed convey?

1. Title to the grantor upon trust expiration

2. Title to a buyer who is the trustor

3. Title to another party, usually the beneficiary

4. Title back to the original owner without conditions

The correct answer is: Title to another party, usually the beneficiary

A Trustee's Deed is a legal document that conveys title to property from a trustee to a beneficiary or another party. This typically occurs in the context of a trust, where the trustee manages the property on behalf of the beneficiaries. When a property is sold or transferred by the trustee, it signifies that the trustee is executing their duty to manage the trust assets according to the trust agreement. The correct answer highlights the role of the beneficiary, emphasizing that the trustee acts in the best interest of that party during the conveyance of property. When the property is conveyed through a Trustee's Deed, it is typically to fulfill the terms of the trust or to realize the benefits of the trust agreement. This transaction upholds the trustee's obligation to manage and transfer the property as directed by the trust document. Understanding this concept is crucial because it reflects the fiduciary responsibility of the trustee and the nature of trusts in real estate transactions. Each trust can have different stipulations about how property is managed and transferred, which is essential knowledge for anyone involved in real estate.