When a NC seller pays off their mortgage at closing, the deed of trust is released by recording a:
Why Satisfaction of mortgage (or deed of release/cancellation) Is Correct
Answer B: Satisfaction of mortgage (or deed of release/cancellation)
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
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).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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Related North Carolina Questions
- Recording a deed in North Carolina's Register of Deeds provides:Escrow & Title
- In NC, recording a deed in the Register of Deeds provides:Escrow & Title
- In NC, a 'notice of satisfaction' (or 'cancellation of deed of trust') is recorded when:Escrow & Title
- In NC, a 'discharge of mortgage' or 'cancellation of deed of trust' is important at closing because it:Escrow & Title
- In NC, what is the legal effect of recording a deed in the county register of deeds?Property Ownership
- A 'survey plat' recorded in a NC county's Register of Deeds serves to:Property Ownership
- A deed of trust differs from a mortgage primarily because it:Finance
- A buyer and seller in North Carolina have signed a contract, but closing is delayed because the seller cannot produce clear title. This is an example of:Contracts
Key Terms to Know
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).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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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