Which clause in a deed of trust in Georgia is similar to the defeasance clause in a mortgage?

The reconveyance clause in a deed of trust serves a purpose akin to that of the defeasance clause found in a mortgage. When a borrower pays off their loan, the reconveyance clause ensures that the lender transfers the title of the property back to the borrower, thereby releasing the lien that the lender held. This process effectively cancels the security interest in the property, similar to how a defeasance clause nullifies the mortgage obligation once the debt is completely satisfied.

Understanding the role of this clause is vital in recognizing how ownership is restored to the borrower after fulfilling their loan terms. It highlights the relationship between the borrower, lender, and the property in a secured transaction, ensuring that once the debt is settled, the borrower holds clear title to the property without encumbrances.