Escrow & Title

In Montana, a satisfaction of mortgage (or deed of reconveyance for a deed of trust) should be recorded after loan payoff to:

AIncrease the property's assessed value
BRelease the lien and clear the title, showing the debt is paid✓ Correct
CAllow the lender to foreclose in the future
DTransfer the property to the lender

Explanation

After a loan is paid off, the lender must execute and record a satisfaction of mortgage or deed of reconveyance to release the lien from the title. This is essential to clear the title for future sales or financing and must be done within statutory timeframes.

Related Montana Escrow & Title Questions

Practice More Montana Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Montana Quiz →