Title to a certain real property is being held in a trust as collateral for a loan. What kind of deed will the trustee use to convey the title to the borrower when the loan terms are satisfied?

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Emelia Macias

Business

31 October, 04:35

Title to a certain real property is being held in a trust as collateral for a loan. What kind of deed will the trustee use to convey the title to the borrower when the loan terms are satisfied?

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Alessandra Blackburn · Answer 1

Answer: Reconveyance deed

Explanation: A Reconveyance deed is used to indicate that a borrower has paid his loan or debt in full. A Reconveyance deed is issued by the trustee or lender to signal the transfer of title to the original owner after he or she must have satisfied the term of loan issued by the trustee. A Reconveyance deed is usually notarized containing a legal description of the property and its parcel number.