A borrower in California pays off their deed of trust loan in full. The beneficiary notifies the trustee that the obligation has been satisfied and delivers the original note and deed of trust. Under California Civil Code §2941, what is the trustee required to do?
Correct Answer
B) Execute and record a deed of reconveyance within 21 days of receiving the request and original documents
Under California Civil Code §2941, once a deed of trust obligation is paid in full, the beneficiary must deliver the original note and deed of trust to the trustee with a written request for reconveyance. The trustee must then execute and record a deed of reconveyance within 21 days of receiving those documents. This reconveyance extinguishes the lien and returns clear legal title to the trustor (borrower). Failure to comply can expose the beneficiary to statutory penalties.
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