Illinois Real Estate Practice Exam

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What document should a homeowner obtain from the bank after making the final mortgage loan payment to ensure the bank's lien has been released?

Affidavit of Title
Release of Lien
Deed of Reconveyance
Quitclaim Deed

The correct answer is: Release of Lien

Obtaining a Release of Lien from the bank after making the final mortgage loan payment is essential for a homeowner to ensure that the bank's claim on the property is officially removed. This document serves as legal proof that the mortgage has been satisfied and that the lien on the property is no longer valid. The Release of Lien effectively acknowledges that the homeowner has fulfilled their obligations under the mortgage agreement, and it provides peace of mind that they have clear title to their property. Without this document, future buyers or lenders might still see the lien as active, potentially causing complications. Other documents, such as the Affidavit of Title or the Quitclaim Deed, do not serve the same purpose in releasing a mortgage lien, as they are used in different contexts regarding property ownership and title assurance. The Deed of Reconveyance is specific to certain types of loans, particularly in trust deeds, and is not applicable in the broader context of mortgages. Therefore, the Release of Lien is the correct document to obtain after the final mortgage payment.