Prove full repayment of a property loan: Deed of Reconveyance
What we’ll cover
What is a Deed of Reconveyance?
A Deed of Reconveyance is a document that releases the lien on real property formed through a Deed of Trust, or, in some cases, a mortgage. Deeds of Reconveyance confirm the repayment of the property loan and transfer the property from the lender ("trustee"), who legally owned the property, to the borrower ("trustor") who borrowed money to purchase the property.
Once the loan is repaid, the Deed of Reconveyance is created to include details about the property – such as the party names, recorded information, and legal description – and is signed by the trustee and recorded with the county where the property is located. Once recorded, the Deed of Reconveyance legally transfers ownership of the property from the lender to the borrower.
Depending on what state the property is located in and what type of loan documents were signed, states may require that either a Deed of Reconveyance or a Satisfaction of Mortgage be filed. If you’re wondering which option you fall under, ask a lawyer.
When to use a Deed of Reconveyance:
- You just made your last mortgage payment.
- You lent someone money to buy a house, and they've repaid you in full.
Sample Deed of Reconveyance
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| Prepared By: | | |
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| After Recording Return To: | | |
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____________________________________________________________________________________________________
| SPACE ABOVE THIS LINE FOR RECORDER'S USE |
DEED OF RECONVEYANCE
WHEREAS, THE indebtedness secured by the Deed of Trust executed by:
of , ,
(the "Borrower")
-TO-
of , ,
(the "Trustee")
-FOR-
of , ,
(the "Lender")
recorded on , in the office of the Recorder for the Recording District, State of , in , has been fully paid and satisfied.
The Trustee hereby reconveys unto the Trustor, without warranty, all right, title and interest which was acquired by said Trustee under said Deed of Trust for the real property more particularly described as follows:
Executed by this _______ day of ___________________, 20___.
______________________________
Trustee
NOTARY ACKNOWLEDGMENT
| State of | ) |
| County of | ) |
WITNESS my hand and official seal.
| ____________________________________ | (Notary Seal) |
Notary Public
____________________________________
My commission expires
About Deeds of Reconveyance
Learn about how to prove full repayment of a property loan
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Common Terms in a Deed of Reconveyance
Making a Deed of Reconveyance can be simple with Rocket Lawyer – just answer a few questions and we build the document for you. It is still a good idea, however, to get acquainted with some of the terms used in a Deed of Reconveyance so you know to expect. Here are a few of the most common ones:
Borrower
The borrower is the person or persons who borrowed the money and pledged their property as security for payment of the loan. In a Deed of Reconveyance, the borrower may also be referred to as the “trustor.” All the owners of the property and their spouses who were listed on the Deed of Trust must also be listed on the Deed of Reconveyance.
Lender
The lender is the person or company who is lending the money to the borrower. In a Deed of Reconveyance, the lender may also be referred to as the "beneficiary." All the lenders of the loan who were listed on the Deed of Trust must also be listed on the Deed of Reconveyance.
Trustee
The trustee is the neutral third party who holds the legal title of the property until the borrower pays back the loan in full to the lender. Therefore, it's the trustee who retains factual ownership and control of the property, not the lender. The lender does have a claim to the title, however, and the trustee is to transfer ownership of the property if the lender's claim is ever activated.
Although laws vary from state to state, there are typically no restrictions governing who may or may not serve as a trustee in a Deed of Reconveyance. Generally, the only requirement is that the trustee not be affiliated with either party.
Legal Description
The legal description is a formal description of the location of the property. In urban and suburban areas, the legal description outlines which lot the property occupies. If you're in a rural area, the property description includes the boundaries and property lines with respect to the landmarks. The description often includes a tax parcel or tax assessor's number.
Public Records
A Deed of Reconveyance is considered by the local government as part of the "public record." Local governments maintain public official records of their inhabitants – records including births and deaths, marriages and divorces, property purchases and business openings, adoptions, and more. This information may be stamped on the mortgage itself, a copy of which can be found at the Registry of Deeds in your particular city or township, or county.
Document Preparer
Most states require the name and address of the preparer of the Deed of Reconveyance to be listed in the document. Failure to provide this information can result in additional recording fees or rejection of your Deed of Reconveyance by the County Recorder or Registrar.
If you have more questions about making your own Deed of Reconveyance, reach out to a Rocket Lawyer network attorney for affordable legal advice. If you are ready to make one, with Rocket Lawyer, it’s as easy as answering a few questions. Get started now!
Deed of Reconveyance FAQs
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How do I get a Deed of Reconveyance?
Making a Deed of Reconveyance online is simple. Just answer a few questions, and Rocket Lawyer will build your document for you. Consider these questions beforehand to speed up the process:
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Who is the borrower, lender, and trustee?
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Where will the trustee sign the Deed of Reconveyance?
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What is the legal description of the property?
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What is the recorded information of the Deed of Trust?
If you don't have all of the details you need, you can skip questions and save your document for later.
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Who needs to sign a Deed of Reconveyance?
A Deed of Reconveyance is signed by a trustee (the lender, in most cases) and notarized. Afterwards, it should be filed with the County Recorder's office, or where property deeds are filed in your state or county.
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How do I file a reconveyance?
Contact your local County Recorder or Recorder of Deeds to learn about their specific process. If you have questions, reach out to a Rocket Lawyer network attorney for affordable legal advice.
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What is a full reconveyance?
A full reconveyance is when a Deed of Trust or a mortgage has been paid in full and the trustee states publicly, with a notarized signature, that the loan has been paid. Whether you get a Deed of Reconveyance, a Satisfaction of Mortgage, or a full reconveyance, it all essentially means that the property is finally all yours.
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What is the difference between a Deed of Reconveyance and a Satisfaction of Mortgage?
These documents are very similar in that each provides proof that a mortgage or property loan has been fully repaid. The difference, essentially, is that you use a Deed of Reconveyance to prove that a loan under a Deed of Trust has been repaid, and you use a Satisfaction of Mortgage to show that a loan made through a mortgage has been repaid. Also, unlike a Satisfaction of Mortgage, a Deed of Reconveyance is signed by the third-party "trustee" named in the Deed of Trust who had legal ownership of the property.
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