Under title theory, paying off the debt results in what outcome regarding conveyance?

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Multiple Choice

Under title theory, paying off the debt results in what outcome regarding conveyance?

Explanation:
Paying off the debt ends the lender’s hold on the property's title. Under title theory, the lender possesses legal title to secure the loan, while the borrower has equitable title. When the loan is fully paid, that security is removed and the title is reconveyed back to the borrower. In other words, the conveyance of title to the lender is defeated, and the borrower obtains full ownership in fee simple. The payoff does not create a new lien or leave the lender with any interest, and it simply ends the lender’s title transfer.

Paying off the debt ends the lender’s hold on the property's title. Under title theory, the lender possesses legal title to secure the loan, while the borrower has equitable title. When the loan is fully paid, that security is removed and the title is reconveyed back to the borrower. In other words, the conveyance of title to the lender is defeated, and the borrower obtains full ownership in fee simple. The payoff does not create a new lien or leave the lender with any interest, and it simply ends the lender’s title transfer.

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