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Joe from Prep Agent discusses the role of a trustee in real estate transactions, emphasizing that not everyone needs to know about it as its importance varies by state. Trust deeds involve three parties: trustor, trustee, and beneficiary. The trustor is someone seeking a loan from a bank to buy a house. The trustee, as a neutral third party, holds the property title on behalf of the beneficiary. Understanding these key roles is essential in real estate transactions.