Property Ownership

In Washington, a 'defeasance clause' in a mortgage or deed of trust means:

AThe borrower must defend the lender's title
BThe lien is defeated (released) when the debt is fully repaid✓ Correct
CThe lender can defeat the borrower's occupancy rights
DThe property reverts to the original grantor upon default

Explanation

A defeasance clause states that the mortgage or deed of trust lien is automatically 'defeated' (extinguished) upon full repayment of the debt. Once the debt is repaid, the lien has no further effect and must be released from the public record.

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