I have owned a 6 unit building in California for 5 years through an LLC. The property was purchased with seller financing only and a Deed of Trust was filed with the County Recorder's office. The promissory note was an asset in the seller's trust and the seller has now died. There are still 25 years to go on the loan. Pursuant to the terms of the purchase-sale agreement, payments will continue to the beneficiaries of the trust. When the note is paid in full, either through refinance or at the end of the loan term, what steps will be necessary for a release of the lien? Do all beneficiaries have to execute a release of the lien? What remedies are available if a beneficiary will not execute?
Normally the trustee / co-trustee(s) can sign off. It depends on the trust. If all the beneficiaries are trustees then most likely yes they will need to sign off. Hopefully there is only one trustee. Everything should be run through the trustee as they are the ones with fiduciary responsibilities to the trust. You might want to seek professional legal guidance. It would be a bummer to pay down the loan for an extended time only to end in mishap.