Deed Of Reconveyance

A deed of reconveyance is a legal document that transfers title of a property from a lender back to the borrower. It is used when a loan has been paid in full and the borrower has fulfilled all their obligations under the loan agreement. The deed of reconveyance is usually signed by the lender and recorded with the local government to prove that the borrower now owns the property free and clear.

Benefits And Drawbacks Of Using A Deed Of Reconveyance

A deed of reconveyance is a legal document that transfers ownership of real estate back to the original owner, typically after a mortgage has been paid off. This type of deed is often used to transfer a home from a lender to the borrower once the mortgage has been paid in full, and it can also be used to transfer the title of any piece of real estate.

Advantages

The primary advantage of using a deed of reconveyance is that it is an efficient and cost-effective way to transfer ownership of a property. It is a simple document that does not require a lot of paperwork or additional fees. The process can also be completed quickly, as the deed does not require any additional approvals or signatures. Additionally, a deed of reconveyance provides legal proof that the title has been transferred back to the original owner.

Disadvantages

One of the main drawbacks of using a deed of reconveyance is that it does not provide any protection for the buyer if the seller fails to pay their mortgage. In this case, the buyer may have to take legal action to reclaim the property. Additionally, a deed of reconveyance does not provide any guarantee that the title is free of any liens or encumbrances. This means that the buyer should always conduct their due diligence to ensure that there are no outstanding issues with the title before completing the transfer.

How To Prepare And File A Deed Of Reconveyance: A Step-By-Step Tutorial

Step 1: Gather the necessary documents. You will need to provide the deed of reconveyance, a copy of the original mortgage, the original note, and any other documents related to the original loan.
Step 2: Prepare the deed of reconveyance. The deed of reconveyance must include the following information: the name of the grantor (the borrower), the name of the grantee (the lender), the date of the original mortgage, the date of the deed of reconveyance, a legal description of the property, and the amount of the loan that remains unpaid.
Step 3: Sign the deed of reconveyance. Both the borrower and the lender must sign the deed in the presence of a notary public.
Step 4: File the deed of reconveyance. Once the deed is signed, it must be filed with the county recorder’s office. The filing fee varies by county, so make sure you check for the fee before filing.
Step 5: Notify the lender. After the deed is filed, the lender must be notified so that they can release the lien on the property.