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.

Related South Dakota Escrow & Title Questions

Practice More South Dakota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free South Dakota Quiz →