Escrow & Title
In Rhode Island, a 'satisfaction of mortgage' (or discharge of mortgage) must be recorded to:
ATransfer the property to the buyer
BRemove the mortgage lien from the property's title after the loan is paid off✓ Correct
CConfirm the buyer's credit score
DTransfer the escrow account to the new owner
Explanation
When a mortgage is paid off, the lender issues and records a discharge of mortgage (satisfaction of mortgage) at the local registry of deeds to formally remove the lien from the property's title, establishing that the debt is satisfied.
Related Rhode Island Escrow & Title Questions
- What is a 'HUD-1 Settlement Statement' (or its modern equivalent, the Closing Disclosure) used for in a Rhode Island closing?
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- What is a 'survey' in the context of a Rhode Island real estate transaction?
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