Escrow & Title
In Nevada, what is the purpose of a 'deed of reconveyance' in a deed of trust transaction?
ATo transfer title from the buyer to the lender when a loan is made
BTo transfer title back to the borrower (trustor) from the trustee when the loan is fully repaid✓ Correct
CTo allow the beneficiary to initiate non-judicial foreclosure
DTo convey title from seller to buyer at the close of escrow
Explanation
In Nevada's deed of trust system, when a borrower obtains a loan, title is conveyed to a neutral trustee (not the lender/beneficiary). When the loan is fully repaid, the lender (beneficiary) instructs the trustee to issue a 'deed of reconveyance,' which transfers title back to the borrower (trustor). This document should be recorded to clear the lien from the title. Nevada uses deeds of trust rather than mortgages, so reconveyance replaces the mortgage satisfaction document used in mortgage states.
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