California Real Estate Practice Exam

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A deed of reconveyance is used to

  1. Transfer property to a buyer

  2. Secure a second mortgage

  3. Convey title from the trustee to the trustor

  4. Grant easement rights

The correct answer is: Convey title from the trustee to the trustor

A deed of reconveyance is a legal document that transfers the title of a property from a trustee back to the trustor, who holds the original title. This commonly occurs when a property owner has paid off their mortgage and the deed of trust, which gave the lender an interest in the property as collateral, is no longer needed. Therefore, options A, B, and D are incorrect. Option A is incorrect because a deed of reconveyance does not necessarily involve a buyer and is instead a transfer between two parties already involved in the property. Option B is incorrect because a deed of reconveyance is not used to secure a second mortgage, but rather to release a previous mortgage. Option D is incorrect because a deed of reconveyance deals with transferring ownership, not granting rights to use the property.

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