A deed of reconveyance is a recorded document that returns legal title in real property from the lender (or trustee) back to the borrower after the borrower has fully paid a mortgage or deed of trust. Recording the document with the local land-records office removes the lender’s lien from the public title record and shows that the borrower owns the property free of that particular mortgage claim.
Key terms (defined)
– Lien: a legal claim on property used to secure repayment of a debt.
– Deed of trust: a three-party security instrument (borrower, lender, trustee) used in some states instead of a mortgage; the trustee holds title until the loan is paid.
– Recording: filing a document with the county or local recorder so it becomes part of the public record.
– Satisfaction of mortgage: an equivalent document in some states that confirms a mortgage has been paid and released.
How a deed of reconveyance works — step by step
1. Loan payoff: The borrower pays the full outstanding balance of the mortgage or deed of trust (for example, at loan maturity, payoff, sale, or refinance).
2. Lender certification: The lender (or the lender’s agent) prepares a deed of reconveyance that states the debt is satisfied and that the security interest is released.
3. Notarization/signature: The lender signs the document and it is notarized if required by state law.
4. Recording: The lender or a closing/title company records the deed with the county recorder (or equivalent) where the property is located.
5. Title update: The public title record is updated to show the lien released; future title searches will no longer show that mortgage as an encumbrance.
What’s typically included in a deed of reconveyance
– Identification of the borrower and lender (and trustee if applicable).
– Legal description of the property (lot, block, or metes-and-bounds language).
– Statement that the mortgage/deed of trust has been paid in full and the lien is released.
– Date the loan was satisfied.
– Signature of the lender or trustee and notarization block.
– Recording information (book/page or instrument number) after filing.
Practical checklist for homeowners after paying off a mortgage
– Obtain written payoff confirmation from the lender.
– Ask the lender when it will prepare and record the deed of reconveyance.
– Request a copy of the recorded reconveyance (instrument number or recorded copy).
– Confirm the reconveyance appears on a title search or county online records.
– If you refinanced, verify the old lien is released even though a new lien now appears.
– If problems arise (delay, errors), contact the lender, then the county recorder, and consider title counsel if the record remains uncleared.
Small worked example
– Scenario: You bought a home and borrowed $400,000 under a deed of trust. Years later you sell the house for $480,000. At closing, the title company pays $400,000 to your original lender to satisfy the loan.
– Next steps: The lender certifies payoff, signs a deed of reconveyance, and the title company records it with the county within a few weeks.
– Result: The public records show the original $400,000 lien has been released. The buyer’s title insurance and closing statements rely on that reconveyance as evidence the seller no longer has that encumbrance.
Common issues and FAQs
– Security interest vs. deed of reconveyance: A security interest (commonly called a lien) is the lender’s legal claim on the property while the loan is outstanding. The deed of reconveyance is the document that removes that security interest once the debt is paid.
– What if the reconveyance isn’t filed or is filed incorrectly? If the reconveyance is not recorded or is recorded with errors, the lien may still appear in title searches. That can block sales or refinances. To fix it, request corrected recording from the lender; if unresolved, file a quiet-title action or seek title company/legal assistance.
– Can a homeowner be foreclosed after a reconveyance? Once the lender’s reconveyance is properly recorded, that lender no longer has the power to foreclose on the debt it released. However, reconveyance does not remove other risks of foreclosure—most importantly unpaid property taxes or other junior liens can still lead to enforcement
Other common questions and practical next steps
Who issues the deed of reconveyance?
– The lender or its servicing agent issues the deed of reconveyance (sometimes called a release, satisfaction, or mortgage release) after receiving full payoff of the secured debt. If a third-party trustee holds title under a deed of trust, that trustee usually executes the reconveyance on the lender’s instruction.
How long does it take to get recorded?
– Timing varies by state and by servicer. Many servicers record the reconveyance within 10–60 days after payoff; some states impose statutory deadlines (often 30–60 days). County recorder processing adds additional days. Always check your state or county rules for exact deadlines.
Step-by-step checklist for homeowners after payoff
1. Get a written payoff statement showing the exact date paid, principal, interest, per-diem interest, and any fees.
2. Request written confirmation from the servicer that the loan is paid in full and that a reconveyance will be issued (include loan number and payoff date).
3. Ask the servicer when it will record the reconveyance and request a copy or recording reference number.
4. Check your county recorder’s online records (or call) about 2–4 weeks after payoff to confirm the reconveyance is recorded.
5. If not recorded in the timeframe promised, send a follow-up written request and keep copies.
6. If the servicer doesn’t correct the issue, contact the title company used in the purchase or a real estate attorney, or consider a quiet-title action if the lien clouds title.
Practical tips and traps
– Keep the payoff statement and bank proof of payment. Those are your primary evidence of satisfaction.
– Different terms: “deed of reconveyance,” “release of mortgage,” and “satisfaction of mortgage” are related but vary by jurisdiction and by whether a mortgage or a deed of trust was used.
– Recording errors (misspelled name, wrong legal description) can leave a lien on title even though the debt is paid. Request a corrected reconveyance immediately.
– If you find a recorded lien after payoff, get a certified copy of the recorded reconveyance and present it to the county recorder or your title company.
Worked numeric example (payoff and per‑diem interest)
Assumptions:
– Principal at last statement: $150,000
– Annual interest rate: 4.50%
– Payoff date is 10 days after the last statement date
Per‑diem interest = Principal × Annual rate ÷ 365
= 150,000 × 0.045 ÷ 365 ≈ $18.49 per day
Extra interest for 10 days = 18.49 × 10 = $184.90
If any escrow shortages or fees apply, they must be added. So a rough payoff = 150,000 + 184.90 + applicable fees. Always obtain an exact payoff figure from the servicer for a specified payoff date; per‑diem and fees vary.
Sample short letter/email to request reconveyance (adapt and keep copies)
[Date]
Loan servicer name and address
Re: Loan number [insert loan number] — Request for reconveyance documentation
To whom
it may concern
I am writing to request reconveyance (sometimes called a deed of reconveyance, release of deed of trust, or satisfaction of mortgage) for the following loan, which has been paid in full.
Loan number: [insert loan number]
Borrower(s): [insert your name(s)]
Property address: [insert full property address]
Date loan paid in full: [insert payoff date]
Date of final payment/last statement: [insert date]
Record reference (if known): County: [insert county], Recorder’s book/page or document number: [insert if available]
Please provide:
1) A copy of the signed reconveyance document ready for recording (or the recorded reconveyance document) showing the lien released and identifying the county recorder’s document number and recording date.
2) Confirmation of the date the reconveyance was or will be recorded, and the name and contact information of the trustee or title company that will record it.
3) If any fees or forms are required from me to complete recording, please list them and provide electronic or mail instructions.
4) If you have already returned the original note or other lien documents to the borrower or a third party, please state when and to whom.
Please send the requested reconveyance documentation to:
Mailing address: [your mailing address]
Email (preferred): [your email address]
Phone: [your phone number]
I would appreciate written confirmation within 14 days of this request. If you believe additional documentation or payment is required, please let me know immediately and provide a contact name and direct phone number.
Sincerely,
[Your name]
[Enclosures: copy of paid-in-full statement, last mortgage statement, proof of identity — adapt as needed]
Practical next steps checklist
– Gather documents: final payoff statement, paid‑in‑full receipt, last mortgage statement, photo ID, and the recorded deed of trust or mortgage document (book/page or instrument number).
– Send a written reconveyance request to the loan servicer/trustee (keep copies and use certified mail or email with delivery/read receipt).
– Ask the servicer for a recording deadline and the county document number once recorded.
– If you receive an unrecorded reconveyance document, take it to the county recorder’s office and request recording; keep the recorded copy.
– Confirm that title searches and future mortgage searches show no lien; request a title company search if you plan to sell or refinance.
Typical timing and fees (what to expect)
– Timing: Many servicers and trustees complete reconveyance within 30 days after payoff; some states or trustees may take up to 60 days. If the reconveyance is delayed, start follow-up communications at 30 days.
– Recording fee: County recorder fees vary by jurisdiction—often $10–$50 for a standard document, more for additional pages or special handling.
– Servicer/trustee processing fee: Some trustees charge a small reconveyance processing fee (commonly $0–$100). Ask the servicer for an itemized list.
– If you plan to record the reconveyance yourself, verify the county’s requirements (format, number of copies, and whether an original signature or notarization is required).
If the servicer or trustee does not reconvey
1) Re-send your request and include proof of payoff and payment receipts. Use certified mail or a tracked email and keep copies.
2) Escalate: contact the servicer’s loss‑mitigation or legal department; ask for a contact name and timeline in writing.
3) State regulator or consumer protection: file a complaint with your state’s banking or consumer finance regulator and the federal Consumer Financial Protection Bureau (CFPB).
4) Quiet title or court action: if informal remedies fail, a legal action (quiet title or declaratory relief) can clear title; this is a county‑court process and usually requires an attorney.
5) Statutory damages: some states impose penalties for wrongful failure to reconvey; consult local statutes.
Key definitions (brief)
– Reconveyance / Deed of reconveyance: A document executed by the trustee (or lender where applicable) that transfers legal title back to the borrower and removes the lien created by a deed of trust.
– Satisfaction of mortgage / Release of mortgage: Equivalent concept under a mortgage (rather than a deed of trust); a recorded instrument showing the mortgage lien has been satisfied.
– Trustee: A neutral third party named in a deed of trust who holds legal
title on behalf of the lender until the borrower pays off the loan and the trustee has authority to reconvey legal title back to the borrower upon satisfaction.
Additional key definitions (brief)
– Deed of trust: A security instrument used in some states that involves three parties — borrower (trustor), lender (beneficiary), and trustee — creating a lien on property until the loan is repaid.
– Lien: A legal claim against property to secure payment of a debt. A reconveyance removes that lien.
– Recordation (recording): The act of filing a deed or other document in the county recorder’s office so it becomes part of the public land-records.
– Chain of title: The sequence of recorded documents that show ownership history of a parcel of land.
– Quiet title: A court action to establish ownership and remove clouds on title when informal remedies fail.
Typical reconveyance process — step-by-step
1. Loan payoff: Borrower pays the full amount required to satisfy the mortgage/deed of trust (principal, accrued interest, fees).
2. Lender issues payoff confirmation and instructs trustee (if applicable) that the debt is satisfied. Some lenders issue a payoff letter or an electronic release.
3. Trustee prepares a deed of reconveyance (or lender prepares a satisfaction/release) that identifies the original deed of trust/mortgage and states the lien is released.
4. Execution: The trustee (or authorized representative) signs the reconveyance in the form required by state law (often notarized).
5. Recording: The executed reconveyance is recorded in the county recorder’s office where the property is located. Recording provides public notice that the lien is gone.
6. Borrower obtains a copy of the recorded reconveyance and verifies the chain of title is clear.
Borrower’s checklist to confirm reconveyance
– Get the final payoff statement in writing showing amount paid and date.
– Obtain written confirmation from the lender that the loan account is “paid in full” or “satisfied.”
– Ask who will prepare and record the reconveyance (trustee, lender, title company). Get an estimated recording date.
– Confirm that the reconveyance will be recorded in the county recorder’s office for the property.
– Request a copy of the recorded reconveyance and check that the document references the original deed of trust/mortgage by book/page or document number.
– Order a title search or simple title report (optional) to confirm the lien is removed from the public record.
Worked numeric example
– Loan payoff: $150,000 principal + $500 accrued interest = $150,500 final payment (paid on June 1).
– Trustee fee: $50 (varies widely). County recording fee: $40. Title company administrative charge (if used): $100.
– Timeline: Lender sends payoff notice to trustee by June 2; trustee prepares reconveyance and signs by June 10; document recorded June 12. Borrower receives recorded copy June 14.
– Total out-of-pocket (non-payoff): $50 + $40 + $100 = $190 (excluding taxes, courier costs).
Assumptions: fees and timelines are illustrative — local practice and statutes determine actual amounts and deadlines.
Common problems and practical remedies
– Lender fails to notify trustee or delays filing: Contact lender in writing, request immediate action, and set a deadline. Keep records of all communications.
– Reconveyance recorded with errors (wrong name, wrong legal description): Ask for corrective reconveyance; if refused, consider a corrective affidavit or court action.
– Trustee records nothing despite payoff: Request a certified copy of the payoff and send to the trustee; if uncooperative, escalate to lender’s legal department or file an affidavit of lost reconveyance and pursue quiet title if necessary.
– Reconveyance never filed and seller/buyer needs clear title for sale/refinance: Use a title company to handle short-term solutions (escrow holdback, subordination) or pursue quiet title.
Timeframes, costs, and state variation
– Timeframes: Many lenders/trustees record within 10–30 days after payoff, but state laws sometimes require faster action (e.g., statutory deadlines of 10–30 days in some jurisdictions). Check your state law or county rules.
– Costs: Recording fees, trustee fees, and document preparation costs vary by county and state. Title companies can charge additional administrative fees.
– State variations: Whether a deed of trust or mortgage is used depends on the state; remedies and required forms differ. Research state statutes or county recorder guidance for specifics.
When to consult a professional
– If the reconveyance contains errors that a lender/trustee won’t fix.
– If the lender cannot be located or is insolvent and no reconveyance is forthcoming.
– When preparing to sell or refinance and title issues appear.
– If you plan a quiet title action or need help interpreting state statute deadlines.
Useful resources
– Investopedia — “Deed of Reconveyance”:
– Cornell Legal Information Institute — “Mortgage”
://www.law.cornell.edu/wex/mortgage
– Consumer Financial Protection Bureau — “Mortgages”: /
– American Land Title Association (ALTA) — resources on title and reconveyance issues: /
– Nolo — consumer-friendly legal articles on mortgages and deeds
Educational disclaimer: This information is educational and general in nature, not legal or financial advice for your specific situation. For document preparation, title defects, or disputes about reconveyance, consult a licensed attorney, a title company, or your county recorder’s office. I do not provide individualized investment or legal advice.