With a trust deed, how does a lender release their lien?

A lender releases their lien on a property secured by a trust deed through the process of recording a reconveyance deed. This legal document is executed once the borrower has paid off the loan in full, effectively transferring the title back from the trustee to the borrower. The reconveyance deed serves as proof that the lender no longer has any claim to the property and that the lien is removed from public records.

The importance of recording the reconveyance deed lies in its role in maintaining clear property titles; once it is recorded, it ensures that any future purchasers or lenders know that the property is free of that particular lien. In contrast, the other options listed do not serve to release a lien in the context of trust deeds. For instance, a satisfaction deed typically applies to mortgages and indicates that a debt has been paid, but it does not pertain specifically to the process required with a trust deed. Quitclaim deeds and warranty deeds are unrelated to the release of liens; quitclaim deeds transfer ownership interests, while warranty deeds provide guarantees about the title but do not deal with lien satisfaction.