In real property transactions, a beneficiary typically refers to the lender or bank who is named in a Deed of Trust. Every Deed of Trust will identify a named beneficiary who typically receives the deed of trust in exchange for their loaning money to a homeowner. In real estate transactions, the beneficiary list on a deed of trust is usually a bank; however an individual person can also be listed as a beneficiary. The deed of trust identifies the basic terms of the loan, such as the amount borrowed from the beneficiary/lender.
What is a Beneficiary in Real Property Transactions?
About the Author: Sandy McCarthy
Sandra M. McCarthy, founder of A People’s Choice, has worked exclusively in the legal field since 1976. She served as the 2004-2005 President of CALDA (California Association of Legal Document Assistants). She obtained a Paralegal Certificate from the University of California, Santa Barbara. During her career in the legal field, she has worked as a freelance paralegal, law office manager and paralegal studies teacher, and has co-authored numerous legal publications and written hundreds of self-help legal articles. Sandy is dedicated to the expansion of affordable, low-cost, self-help document preparation.