Loan mechanics

Deed of reconveyance

The instrument returning title from the trustee to the borrower on payoff

The deed of trust equivalent of a mortgage satisfaction. The trustee executes it once the beneficiary confirms the debt is paid, and recording it clears the security interest from the record.

How the exam asks about it

A recording question as much as a financing one — a payoff that is never recorded leaves a cloud on title.

Related terms

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