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Joe from Prep Agent discusses the concept of a trustee in real estate transactions. He explains that not everyone needs to know about trustees, as their use varies by state. Trust deeds involve three parties: trustor, trustee, and beneficiary. The trustor is a person looking to buy a house but lacks funds, so they borrow from a bank. The trustee holds legal title to the property on behalf of the beneficiary. It is essential to understand the roles of each party in a trust deed.