Which of the following describes legal title in a trust deed?

Legal title in a trust deed is held by the trustee. This means that the trustee has the authority to manage the property on behalf of the beneficiary (the lender), but does not have the beneficial interest in the property. The trust deed serves to secure the loan for the borrower, giving the trustee the responsibility to ensure that the terms of the loan are met. If the borrower defaults, the trustee has the legal authority to initiate foreclosure proceedings in order to protect the lender's interest. This structure is designed to provide a clear delineation of roles and responsibilities, where the borrower retains equitable title—the right to live in and use the property—while the trustee holds legal title to facilitate the transaction and enforce the terms of the loan if necessary.