Deed of Reconveyance Template

Paying off your mortgage is a monumental achievement. Once you’ve made your last payment, though, you’ll have a critical document to handle: a deed of reconveyance. What is a deed of reconveyance, and what is it for? Here’s a closer look.

What a Deed of Reconveyance Is

So what is a deed of reconveyance, exactly? Buying a home involves plenty of paperwork. If you’re like most people who financed their home, you probably had to sign a secured amortized promissory note, which is a promise to repay your home loan.

While you pay off the loan, the lender has a lien on the title. The lien gives them the right to repossess your home via foreclosure if you stop making payments.

Once you pay off your mortgage, your lender will send you a deed of reconveyance. This deed proves you’ve paid the mortgage and formally releases the lien on the home.

What the Document Includes

Here’s what’s generally included in a deed of reconveyance:

• Your name and address
• Your mortgage lender’s name and address
• A complete legal description of the property, which is part of every property deed
• “Release language” confirming the lender is releasing the lien

The deed will also have space for your signature and the signature of a mortgage lender representative.

How the Reconveyance Process Works

What is a deed of reconveyance process like? Typically, these are the main steps:

• You pay off your mortgage.
• The lender prepares the deed.
• You receive the deed and review it for accuracy.
• You get the deed notarized and recorded.

When you record a deed, you present it to the county recorder’s office in the county where the home is located.

Cost and Timeline

It may take up to two months after you’ve paid off your mortgage to receive your deed. Some lenders charge a fee to generate the deed, and most cities and towns will charge a fee to record it. In many cases, you’ll need to pay a small notary fee, too.

Risks of an Unrecorded Deed

If your deed isn’t properly recorded, a lien may still show on your home’s title. This can cause problems if you try to sell the home later on.

Reconveyance vs. Deed of Trust

You might wonder: What is a deed of reconveyance vs. a deed of trust? A deed of trust is a document you receive when you first take out a mortgage. It allows a neutral trustee to hold the title while you repay the loan.

A deed of reconveyance, on the other hand, officially gives the title to you after you’ve repaid the loan.

The Importance of a Legal Deed of Reconveyance

Once you’ve paid off your home, there’s one more step to take: verifying that your deed of reconveyance is correctly filled out and recorded. Properly recording this deed can save you potential headaches if you sell your home in the future.

If you want to learn more about deeds of reconveyance or other mortgage-related documents, explore our collection of legal documents and guides at ConsumerShield today.