Escrow & Title
A deed of reconveyance is issued by a trustee in a deed of trust transaction when:
AThe property is sold to a new buyer
BThe loan is paid in full, releasing the property from the deed of trust lien✓ Correct
CThe borrower defaults on the loan
DThe trustee changes as part of a refinance
Explanation
A deed of reconveyance is the document used in deed of trust states to return title (reconvey it) from the trustee back to the borrower (trustor) when the underlying loan is fully repaid and the lien is released.
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