Reconveyance
Reconveyance is the process of transferring property title back to the borrower once a mortgage or deed of trust has been fully paid off. The lender executes a reconveyance deed (or satisfaction of mortgage) that officially releases their claim on the property and clears the title.
Example
“After making her final mortgage payment, Maria received a deed of reconveyance from the bank, officially transferring full ownership of the house back to her name.”
Memory Tip
Think 'RE-conveyance' - the title is being conveyed back (RE-turned) to you after paying off the loan, like a boomerang coming back.
Why It Matters
Without proper reconveyance documentation, your property title may still show an outstanding lien even after paying off your mortgage, which can complicate future sales or refinancing.
Common Misconception
Some homeowners believe their mortgage is automatically removed from public records when paid off, but reconveyance documents must be properly recorded to clear the title.
In Practice
After making your final mortgage payment, your lender should send reconveyance documents to the county recorder's office within 30-60 days. If this doesn't happen, you may need to contact your lender or hire a title company to ensure proper reconveyance.
Etymology
The term 'reconveyance' combines the Latin prefix 're-' (back) with 'conveyance' from Old French 'conveer' (to escort), literally meaning 'to escort the property title back' to its original owner.
Common Misspellings
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