Patricia has fully paid off her home loan secured by a deed of trust in Fairfax County, Virginia. The lender directs the trustee to release the lien. Which document is typically used in Virginia to release the deed of trust lien from the public record upon full repayment?
Correct Answer
A) A deed of release or deed of reconveyance recorded by the trustee
When a deed of trust loan is fully repaid in Virginia, the trustee executes and records a deed of release (also called a deed of reconveyance) to release the lien from the public record and return legal title to the trustor (borrower). This is the Virginia-specific mechanism that corresponds to the deed of trust structure, as opposed to a satisfaction of mortgage used in mortgage states.
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Related Topics & Key Terms
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Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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