Idaho Real Estate Practice Exam

Who may NOT serve as a trustee for a deed of trust loan in Idaho?

1. Real estate broker

2. Attorney

3. Bank

4. Individual property owner

The correct answer is: Real estate broker

In Idaho, a trustee for a deed of trust loan serves a critical role that involves holding the title to the property in trust until the borrower has fully repaid the loan. The trustee is responsible for overseeing the foreclosure process if the borrower defaults on the loan. A real estate broker, while knowledgeable about property transactions, typically does not fulfill the legal requirements to serve as a trustee. The role of a trustee requires a specific legal understanding and the ability to manage the implications of foreclosure and title transfer that exceed the typical responsibilities of a real estate broker. Attorneys, banks, and individual property owners, on the other hand, are generally regarded as qualified to act as trustees. Attorneys possess the necessary legal expertise to navigate the complexities of the deed of trust process. Banks, as financial institutions, often handle such transactions as part of their lending operations. Individual property owners can also act as trustees, provided they have the consent of the involved parties and take on the associated responsibilities. Thus, the answer indicates that a real estate broker is not suitable to serve as a trustee in this situation, aligning with the legal framework governing real estate transactions in Idaho.