Escrow & Title
When a Washington property is sold using a deed of trust, what document does the beneficiary sign and deliver after the loan is fully paid off?
AA release of mortgage
BA deed of reconveyance✓ Correct
CA satisfaction of judgment
DA quitclaim deed
Explanation
When a deed of trust loan is paid in full, the beneficiary (lender) directs the trustee to execute and record a deed of reconveyance, which transfers the legal title held by the trustee back to the borrower (trustor).
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
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