Where must a Satisfaction of Mortgage be filed?

Where must a Satisfaction of Mortgage be filed?

• A. In the county clerk's office
• B. In the county courthouse
• C. In the state mortgage registry
• D. In the federal recording office

Answer: (B)

The idea behind where a Satisfaction of Mortgage goes is that releasing a recorded lien must be entered into the same public records system that shows who has an interest in the property. A mortgage creates a lien that’s recorded in the county records, so when the loan is paid off, the lien release needs to be filed where those records live. That’s the county courthouse, where the county’s official records office (often the clerk or recorder) maintains the title and lien history for properties in that county. Filing there ensures the satisfaction becomes part of the official chain of title, so the lien is discharged and future buyers or lenders see a clear title. The other options aren’t the usual place for this release. The state mortgage registry isn’t the typical repository for recording lien releases, and there isn’t a federal recording office for this purpose. The filing is done at the county level, in the courthouse where the property records are kept.

The idea behind where a Satisfaction of Mortgage goes is that releasing a recorded lien must be entered into the same public records system that shows who has an interest in the property. A mortgage creates a lien that’s recorded in the county records, so when the loan is paid off, the lien release needs to be filed where those records live. That’s the county courthouse, where the county’s official records office (often the clerk or recorder) maintains the title and lien history for properties in that county. Filing there ensures the satisfaction becomes part of the official chain of title, so the lien is discharged and future buyers or lenders see a clear title.

The other options aren’t the usual place for this release. The state mortgage registry isn’t the typical repository for recording lien releases, and there isn’t a federal recording office for this purpose. The filing is done at the county level, in the courthouse where the property records are kept.