What is the purpose of a trust deed in real estate transactions?

A trust deed serves the purpose of securing a loan in real estate transactions. When a borrower takes out a mortgage, the trust deed acts as a legal document that establishes collateral for the loan. Essentially, the property itself is held in trust as security for the obligation to repay the loan. If the borrower defaults on the loan, the lender has the right to foreclose on the property, which allows them to recoup their investment. This mechanism provides safety to the lender by ensuring they have a claim to the property should there be a failure to repay the loan.

In contrast, the other choices do not accurately reflect the primary function of a trust deed. While transferring ownership, establishing rental agreements, and facilitating home inspections are important aspects of real estate transactions, they are not related to the core purpose of a trust deed. A trust deed specifically pertains to securing a loan, making option B the most appropriate answer in this context.