Escrow & Title
In South Dakota, a 'satisfaction of mortgage' (mortgage release) should be recorded when:
AThe mortgage is first obtained
BThe mortgage loan is fully paid off, to release the lien from the title✓ Correct
CThe property is sold to a new buyer
DThe mortgage is refinanced
Explanation
When a mortgage loan is fully paid off, the lender must execute and record a satisfaction of mortgage (discharge/release) to remove the lien from the property's title. Until recorded, the mortgage appears as an encumbrance on the title.
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