When is a trust deed satisfied on the public records?

A trust deed, also known as a deed of trust, is a security instrument that involves three parties: the trustor (borrower), the trustee (neutral third party), and the beneficiary (lender). The trust deed is typically used to secure a loan or debt by giving the lender a legal interest in the property as collateral.

The satisfaction of a trust deed occurs when the obligation secured by the trust deed has been fulfilled. This is formally recorded in the public records to indicate that the lien on the property has been released and the borrower is no longer under obligation to the lender.

Recording a reconveyance deed is the formal act that provides public notice that the debt has been satisfied. The reconveyance deed serves as proof that the lender relinquishes their claim to the property, effectively indicating that the borrower has paid off the loan in full. This recording is essential for the borrower to clear the title to the property, allowing them to sell or refinance it without any issues related to the previous debt.

The other choices do not serve this purpose. While making the final payment is a crucial step in satisfying the debt, it does not have the legal effect of removing the lender's claim from the public record. A deed, typically, refers to an