Property Ownership
In New Mexico, which instrument would most clearly demonstrate that a previous deed of trust has been satisfied?
AA new deed
BA deed of reconveyance recorded with the county clerk✓ Correct
CA letter from the lender
DA title insurance endorsement
Explanation
A recorded deed of reconveyance is the official document releasing the trustee's interest and serving as public notice that the deed of trust loan has been paid. It should be recorded to clear the title.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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