Escrow & TitleIntermediateAlaska Exam

In Alaska, a 'reconveyance deed' is recorded when:

AProperty is transferred from one owner to another, under standard practice
BA deed of trust loan is paid off, releasing the lien from the propertyCorrect
CA property is sold at foreclosure
DA lien is added to a property

Why A deed of trust loan is paid off, releasing the lien from the property Is Correct

Answer B: A deed of trust loan is paid off, releasing the lien from the property

When a deed of trust loan is paid in full, the trustee records a reconveyance deed (or deed of reconveyance) that releases the trust deed and conveys the property back to the borrower free of the lender's lien. This is analogous to a satisfaction of mortgage for a traditional mortgage loan.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

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