Escrow & TitleIntermediateNorth Carolina Exam

A 'satisfaction of mortgage' in North Carolina is recorded when:

AA new loan is taken out on the property, which is the standard approach used
BThe borrower pays off the mortgage in full and the lender releases the lienCorrect
CThe property is sold
DThe borrower refinances

Why The borrower pays off the mortgage in full and the lender releases the lien Is Correct

Answer B: The borrower pays off the mortgage in full and the lender releases the lien

A satisfaction (discharge) of mortgage is recorded to release the lien from the public record after the borrower fully repays the loan.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

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