What is Reconveyance?

If you buy property or a home using a loan from a lender, then the lender places a lien against the property. The lien is put in place when you originally borrow the loan. A reconveyance can remove this lien when the loan has been paid back in full and the property is yours free and clear.

A reconveyance must be recorded at the county recorder’s office of the county the property is situated in. The reconveyance to be recorded must have the same information that is on the deed of trust. The deed of trust is a document between the borrower and the lender, and also names a trustee. The trustee is usually a title company, and the deed of trust also records the property that the loan is being used to buy.

The reconveyance must be recorded at the county office so that, if a search is made on the property, it will show that the lien has been paid in full. The property owner’s name may not always appear on the deed of trust. If you buy a property from an individual and take on their loan repayments for the property, then the original owner’s name will be on the deed. The original information must be recorded on the full reconveyance when you pay off the loan.

When you pay off your loan, you should receive the original recorded deed of trust. You should also receive the deed of full reconveyance and the lien note. All that is really necessary to prove that the loan has been paid in full is the original deed of full reconveyance.

You should receive the deeds to your property when your purchase of the house is first recorded. The loan note or lien is the only thing that stands between you and outright ownership of the house. Once you have paid the loan and it has been recorded, you then have full reconveyance and own the property outright.

Written by Garry Crystal