Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

The use of the power of sale in a deed of trust is authorized by the beneficiary. In the context of a deed of trust, the beneficiary is typically the lender or the entity that is providing the loan to the borrower, who is referred to as the trustor. When a borrower defaults on the loan, the beneficiary has the power to invoke the power of sale, allowing them to sell the property to recoup the owed amount without needing to go through court. This process is generally quicker and less costly than a judicial foreclosure, which requires court intervention.

The trustor, while an important party in the deed of trust, does not have the authority to initiate a sale; their role is mainly as the borrower. The trustee acts as an intermediary, holding the legal title to the property and facilitating the sale process if the beneficiary decides to exercise the power of sale. However, it is ultimately the beneficiary who has the authority to authorize the sale in response to the trustor's default. Therefore, understanding the roles of each party in this arrangement clarifies why the beneficiary is the one that authorizes the use of the power of sale.