When debt is placed on a property, a trustee is a third-party entity that holds legal title to the property until the borrower fully repays the loan. Requirements to be a trustee vary by state. Whereas a trustee must be authorized by certain law to serve in that position in some states, others have no limitations on who or what entities may serve as a trustee. Common entities that serve as trustees in real estate lending scenarios include title companies, banks, credit unions, and attorneys.