Escrow & Title
In Colorado, a 'release of deed of trust' (deed of reconveyance) is recorded when:
AA. The property is listed for sale
BB. The borrower pays off the mortgage loan and the lender releases the lien on the property✓ Correct
CC. The property is transferred to a new owner
DD. The property is refinanced
Explanation
When a borrower pays off a Colorado deed of trust loan in full, the lender (beneficiary) directs the trustee to record a release of deed of trust (also called a deed of reconveyance). This removes the lien from the public record and gives the borrower clear title.
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