Escrow & Title

A 'satisfaction of mortgage' (discharge of mortgage) in Massachusetts is recorded when:

AThe buyer applies for a new mortgage
BThe mortgage loan is fully paid off and the lender releases the lien on the property✓ Correct
CThe seller accepts an offer that exceeds the mortgage balance
DThe property is refinanced with a new lender

Explanation

When a mortgage is paid in full, the lender must execute and record a discharge of mortgage (satisfaction) at the Registry of Deeds to release the lien from the property's title.

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