Escrow & Title

In South Dakota, a 'deed of reconveyance' is used to:

ATransfer property from one family member to another
BRelease the lien of a deed of trust when the loan is paid off✓ Correct
CConvey property back to the original seller in a failed transaction
DTransfer a deed from an individual to a trust

Explanation

When a loan secured by a deed of trust is fully repaid, the trustee executes a deed of reconveyance to the borrower (trustor), releasing the lien of the deed of trust from the property. This is the equivalent of a mortgage satisfaction/discharge for deed-of-trust transactions.

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