Escrow & TitleIntermediateNorth Carolina Exam

In NC, a 'release deed' (deed of release or satisfaction of mortgage) removes which encumbrance from a property's title?

AA zoning restriction, under standard practice

BA paid-off deed of trust or mortgage lienCorrect

CA recorded judgment

DAn easement

Why A paid-off deed of trust or mortgage lien Is Correct

Answer B: A paid-off deed of trust or mortgage lien

A deed of release or cancellation of deed of trust removes a paid-off mortgage or deed of trust lien from the property's title, clearing that encumbrance from the public record.

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.

Key Escrow & Title Terms in This Question

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.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

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