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Deed Of Reconveyance Explained

Andrew Dehan2-minute read

May 17, 2021

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Are you getting close to paying off your mortgage? Congratulations! That’s a huge accomplishment that you’ve probably been working toward for a long time. After you make your final payment, you may be issued a deed of reconveyance.

Read on to learn what a deed of reconveyance is, how it differs from a deed of trust and how to properly record it with your local government.

What Is A Deed Of Reconveyance?

A deed of reconveyance is a legal document that indicates the transfer of a property’s title from lender to borrower. The deed of reconveyance is typically issued after the borrower has paid off their mortgage in full. 

Some states do not use mortgages but use deeds of trust. These deeds document the details of how much is being borrowed, by whom and from whom. Depending on your state, you may receive what’s called a full reconveyance, which is a notarized document signed by a trustee.

Also depending on your state, you may receive a satisfaction of mortgage document instead of a deed of reconveyance. Whether you get a deed of reconveyance, a full reconveyance or a satisfaction of mortgage document, it means the same thing: your loan has been paid in full and the lender no longer has an interest in your property. With your mortgage or deed of trust paid off, you cannot be foreclosed on by a financial institution.

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The Reconveyance Process

Once you’ve repaid your loan in full, your lender contacts the title company to issue a deed of reconveyance. Depending on local laws, this must happen within 3 – 4 weeks of your final payment.

If you had a deed of trust, the title company will often give you a copy of it, along with your deed of reconveyance and the title to your home.

Remember that filing this deed is a legal transaction. You must have your deed of reconveyance notarized and filed in the public records. Often this means taking your deed of reconveyance to the county offices.

If the deed goes missing or is destroyed, it can create what’s called a clouded title. This means that nothing shows the lien or encumbrance has been paid. Recording this deed of reconveyance accurately is essential to providing proof of your ownership and that you paid your loan.

Examine the deed of reconveyance for errors. Mistakes can happen, and you want to catch them before they’re filed and become part of the public record. Work with the title company to ensure your mortgage payoff is properly documented.

Once you have an accurate deed of reconveyance in hand, guard it and get it to your local records office to be filed.

The Bottom Line

A deed of reconveyance signifies the end of your mortgage. You should celebrate! Paying off your loan is a huge accomplishment. But before you celebrate your freedom from your mortgage, examine the deed of reconveyance for errors and get it filed with your local government as part of the public records.

Once your deed of reconveyance is filed, anyone who searches the public records will see the proof that you own the property outright. Do you have additional question about deeds of reconveyance, or home loans in general? Speak with a Home Loan Expert today.

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Andrew Dehan

Andrew Dehan is a professional writer who writes about real estate and homeownership. He is also a published poet, musician and nature-lover. He lives in metro Detroit with his wife, daughter and dogs.