Escrow & TitleIntermediateCalifornia Exam

After a loan is paid off in California, the lender should provide a:

AGrant deed
BReconveyance deedCorrect
CSatisfaction of mortgage
DQuitclaim deed

Why Reconveyance deed Is Correct

Answer B: Reconveyance deed

When a California deed of trust loan is fully paid, the trustee executes a deed of reconveyance, which transfers legal title back from the trustee to the trustor (borrower), clearing the lien from the title.

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.

Key Escrow & Title Terms in This Question

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