Maryland Lender Requirements for Release of a Deed of Trust
A deed of trust is a legal instrument that makes real property collateral for a loan. If the borrower does not repay the loan according to the terms of the loan agreement, the lender can use the deed of trust to foreclose the real property. Maryland statutes specify requirements for the lender to release the deed of trust after the debtor satisfies the loan in full.
Other People Are Reading
-
Statutory Conditions
-
Maryland real property law requires lenders to release a deed of trust on a residence after full repayment of the loan it served as collateral for. This law is applicable only on deeds of trust on a borrower's principal residence. Also, the loan involved must be for personal, household or family purposes. A loan made for commercial purposes is only covered if it is up to $75,000 and secured by the borrower's primary residence.
Specifications of Release
-
Within a reasonable time after repaying the loan secured by the deed of trust, the lender must document the fulfillment of the loan obligation. The lender can do so by permanently marking the loan documents as paid or satisfied and return them to the borrower, or by providing the borrower with a detailed, signed statement confirming payment. The lender must also issue and pay for a written release of the deed of trust.
-
Recording of Release
-
From the date the borrower completely satisfied the loan, the lender has 45 days to either legally record the release of the trust deed document or to provide the borrower with a copy of the release that satisfies legal recording requirements. If the lender does the recording, the borrower needs to receive a copy of the recorded documents. If the lender gives the release to the borrower for recording, the lender must inform the borrower of the proper government recording office and its address, plus an estimate of the recording fees.
Fees and Costs
-
The lender can charge a fee for recording the release. The lender has a legal obligation to record the release if collecting a fee for the service. Such a lender fee may only be up to $15 higher than the actual government recording fee. Any such fee is not to be considered interest or a loan fee. If the borrower has to go to court to secure the required release and prevails in his action, the lender will be liable for all court costs and reasonable attorney fees.
-
References
- Photo Credit Stockbyte/Stockbyte/Getty Images
