A Missouri licensee is explaining the deed of trust to a first-time homebuyer. The buyer asks: 'If I pay off the loan, who gives me back the title?' Under Missouri law, which party executes the document that returns legal title to the borrower?
Correct Answer
C) The trustee, by executing and recording a deed of reconveyance
In a Missouri deed of trust, the trustee holds bare legal title on behalf of the beneficiary (lender). When the borrower (trustor) fully repays the loan, the beneficiary notifies the trustee, who then executes and records a deed of reconveyance. This document transfers legal title from the trustee back to the borrower, clearing the property of the deed of trust encumbrance. This is the proper Missouri process under RSMo § 443.060 et seq.
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