When a Nevada deed of trust loan is fully paid off, what document must be recorded to release the lien and restore clear title to the borrower?
Correct Answer
D) A deed of reconveyance, recorded by the trustee to transfer bare legal title back to the trustor
When a Nevada deed of trust loan is fully repaid, the beneficiary (lender) instructs the trustee to record a deed of reconveyance (also called a full reconveyance). This document, executed and recorded by the trustee, transfers the bare legal title held by the trustee back to the trustor (borrower), thereby releasing the lien and restoring clear title. This is the proper instrument under NRS Chapter 107 for releasing a deed of trust lien upon payoff.
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