PSI Virginia Real Estate Practice Exam

A Reconveyance Deed is used specifically to transfer title back to the trustor after a loan secured by a deed of trust has been fully paid off. Once the borrower (trustor) has satisfied the debt to the lender (beneficiary), the lender executes a Reconveyance Deed to signify that the lien has been released and the borrower retains full ownership of the property again. This document is essential in clearing the title, ensuring that it reflects the trustor as the rightful owner without any encumbrances from the debt. The other options do not accurately reflect the purpose of a Reconveyance Deed. Transferring property from the beneficiary to the trustor is only part of the process and does not capture the essence of what a Reconveyance Deed accomplishes. Conveying title directly to a new buyer involves different legal processes, typically involving a sale or transfer of ownership rather than the satisfaction of a debt. Revoking an original trust agreement is entirely separate from the function of the Reconveyance Deed, which is focused solely on the transfer of title related to the loan payoff.