Reconveyance

A reconveyance in real estate is the legal document used by a lender formally releases its claim on a real property after a borrower has fully repaid a loan secured thereby. When a Deed of Trust is paid off, the lender (beneficiary) instructs the trustee to issue a Reconveyance, which removes the lender’s lien from the property title. A reconveyance is crucial for ensuring that a property’s title is free of paid off liens, which could otherwise complicate future sales or refinancing. Borrowers should verify that the reconveyance process is completed after paying off any secured lien, as failure to do so can lead to delays in future property transactions.

Retainer Fee: $700.00
(Includes $600.00 cost for document preparation and $100.00 toward recording fees)

Order Reconveyance
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Key Parties in a Reconveyance of a Deed of Trust

  • Borrower (Trustor) – The homeowner who repays the loan
  • Lender (Beneficiary) – The bank or financial institution that provided the loan
  • Trustee – A neutral third party that holds the legal title until the loan is repaid

The Reconveyance Process

  • Borrower pays off the loan in full
  • Lender notifies the trustee that the loan has been satisfied
  • Trustee prepares a Reconveyance, officially releasing the secured claim on title to the property
  • The Reconveyance is recorded with the county recorder’s office

Importance of a Reconveyance

  • Confirms loan repayment – Official proof that the borrower has satisfied their debt
  • Removes lender’s lien – Clears the property title of any claims from the former lender
  • Required for resale or refinancing – A clear title is needed for future real estate transactions

Legal Considerations & Recording

  • The Deed of Reconveyance must be recorded with the county recorder’s office
  • If not recorded, the lien may still appear on the property title, causing issues in future transactions
  • Borrowers should request a copy of the recorded deed for their records
  • There is a legal process to request a Reconveyance if the lender fails to property have prepared and recorded

What Happens If a Reconveyance is Not Recorded?

  • Title Issues – The property may still show a lien, even if the loan is paid off
  • Difficulties in selling or refinancing – The borrower may face delays or legal hurdles
  • Additional legal fees – Borrowers may need legal action to clear the title
  • Solution: Always confirm that the Deed of Reconveyance is recorded and obtain a copy

Services Offered by RELAWDOC

  • Flat fee pricing for peace of mind with a clear, upfront cost
  • Easy online ordering
  • Simple information collection process
  • Consultation to verify information and terms
  • Review by an attorney
  • Coordination of document execution and recording as requested (for additional fees)