Reconveyance
Definition and meaning of Reconveyance in real estate.
A reconveyance is the transfer of a property's legal title back to the borrower after they have fully paid off their mortgage loan.
In more detail
This process is typically executed using a document called a deed of reconveyance, which is drafted and signed by the trustee or lender. The deed must be recorded in the local county records office to prove the property is free of the mortgage lien. If the reconveyance is not properly recorded, the public records will continue to show a lien against the home. Borrowers should verify that this document has been filed after making their final loan payment.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Required by | Borrower to clear title after payoff |
| Typical timing | Typically 30 to 90 days after final payment |
| Also known as | Release of mortgage or satisfaction of mortgage |
After making their final mortgage payment, a homeowner receives a recorded deed of reconveyance from the county clerk, showing their home is officially debt-free.
Frequently asked questions
What is a deed of reconveyance?
It is a legal document signed by a mortgage trustee that releases the lender's claim on a property and transfers full title to the homeowner.
What happens if a reconveyance is not recorded?
If it is not recorded, the mortgage remains a cloud on the title, which will cause issues if you try to sell the home or obtain a new loan in the future.
Related terms
Sources & references
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