Maria purchases a home in Howard County using a conventional loan. At settlement, she signs a promissory note and a deed of trust. After the loan is fully repaid years later, what document is used to return clear title to Maria?
Correct Answer
B) A deed of reconveyance executed by the trustee and recorded in the county land records
When a deed of trust loan is fully repaid in Maryland, the trustee executes a deed of reconveyance, which transfers legal title back from the trustee to the borrower (trustor). This document must be recorded in the county land records where the property is located to clear the title and release the lien. This is the deed of trust equivalent of a mortgage satisfaction.
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Related Topics & Key Terms
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Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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