Deed of Reconveyance

Imagine this: after years of making mortgage payments, you’ve finally made the last one. The excitement of fully owning your home is overwhelming. But wait—there’s one more step before you can truly say, "This house is 100% mine!" That step is receiving a Deed of Reconveyance. If you’re scratching your head and wondering, “What’s a Deed of Reconveyance?”—you’re not alone. Let’s walk through what this document is and why it’s a big deal for homeowners.

What is a Deed of Reconveyance?


A Deed of Reconveyance is a legal document issued by a lender to officially transfer the title of the property back to the borrower (you) once the mortgage has been fully paid off. Essentially, it declares that you are now the sole owner of your home, free and clear of any debt or claim from the lender.

Think of it as a final receipt, confirming that you’ve fulfilled your financial obligation to the bank or mortgage company, and now the property is entirely yours.

How Does the Deed of Reconveyance Process Work?


Here’s a simplified step-by-step process of how it usually works:

Mortgage Paid Off: Once you’ve made your final mortgage payment, your lender begins the reconveyance process.

Lender Prepares the Deed: Your lender will create the document, including details like your property description and loan payoff information. Once prepared, they’ll sign off on it, acknowledging that you’ve paid off the loan.

Recording the Deed: The lender or trustee files the deed with the local county recorder’s office, making it official in the eyes of the law. This clears the lien (the lender’s claim) on your property.

Notification to the Borrower: Once the deed has been recorded, the borrower (you) should receive a copy for your records. At this point, your property is officially free from the lender’s lien.

What is Included in a Deed of Reconveyance?


A Deed of Reconveyance includes several key elements that confirm the release of the lender’s claim on your property. Here’s what’s typically included:
  • Your Name: The document will include your name (or the name of the person who paid off the mortgage) to show who now fully owns the property.
  • Lender’s Name: It will also list the lender or trustee who held the mortgage, showing who is officially releasing the claim.
  • Description of Your Home: There will be a detailed description of your property, including the address and any legal terms that identify your specific home.
  • Loan Details: This includes things like your loan number and how much you originally borrowed.
  • Proof of Payment: The document will state that you’ve paid off the mortgage in full, kind of like a final "receipt" for your loan.
  • Lien Release: Officially states that the lender’s claim or lien on the property is removed.

What Happens If You Don’t Get a Deed of Reconveyance?


If the lender doesn’t issue the Deed of Reconveyance after you’ve paid off your mortgage, it can create some headaches down the road. Without it, the lender still has a lien on your home, which could complicate things if you want to sell or refinance your property.

If it’s been a while and you haven’t received the deed, it’s a good idea to check in with your lender to ensure everything is processed.

How Long Does It Take to Get a Deed of Reconveyance?


Typically, lenders have 30 to 60 days to issue a Deed of Reconveyance once you’ve made the final payment. However, if you don’t see it after a month or two, don’t hesitate to reach out to your lender to make sure things are moving along.

How to Get a Deed of Reconveyance?


Getting a Deed of Reconveyance is an important final step once you've paid off your mortgage. Here’s a step-by-step guide to help you through the process:
  • Make That Final Payment: Once you've paid off your mortgage, the process to get the Deed of Reconveyance starts. It’s the last big step in owning your home outright.
  • Lender Prepares the Deed: After you pay off the loan, your lender will prepare the Deed of Reconveyance, officially acknowledging that you’ve paid in full.
  • Ensure the Deed is Recorded: The lender (or a trustee) should file the deed with your local county office to clear their claim on your property and make it official.
  • Follow Up with the Lender: If it’s been a month or two and you haven’t received the deed, give your lender a nudge to make sure everything’s on track.
  • Receive and Keep the Deed: Once the deed is recorded, you should receive a copy. Keep it in a safe place as proof of full ownership.

Who Needs to Sign a Deed of Reconveyance?


A Deed of Reconveyance must be signed by the trustee, who is responsible for releasing the lender's claim on the property. Additionally, a notary public must acknowledge the trustee's signature to validate the document. In some cases, the lender may also sign the deed, although it's not always required.

Importance of a Deed of Reconveyance


  1. Proof of Ownership: Confirms that the homeowner has fully paid off the mortgage, officially granting them complete ownership of the property.
  2. Removes Lender's Claim: Without it, the lender still technically has a stake in your property. The deed wipes that away, leaving you with full ownership.
  3. Public Record: Once recorded, it becomes part of the official public records, making your home ownership legally recognized.
  4. Boosts Creditworthiness: When your mortgage is officially marked as paid off, it can give your credit score a nice little boost.
  5. Enables Future Transactions: Whether you want to sell your home or refinance it, having this deed means there are no lender claims standing in the way.

Limitations of a Deed of Reconveyance


  1. Lender Dependent: You’re relying on the lender to get the paperwork done and file it properly, which doesn’t always happen as quickly as you’d like.
  2. Legal Complexity: If the deed isn’t recorded properly, the lender’s claim might still exist, making things messy if you try to sell or refinance.
  3. Time Frame Varies: The timeline for receiving the deed can vary, so you might be waiting longer than expected, causing some anxiety.
  4. Unnoticed Lender Failure: If the lender forgets to file the deed, you may not realize there’s a problem until you’re in the middle of trying to sell or refinance—an unwelcome surprise!

Final Thoughts:
Paying off your mortgage is a massive accomplishment, and receiving your Deed of Reconveyance is the final cherry on top. It’s the document that says, “Yes, this house is truly mine.” Once you have it, you can relax knowing you fully own your home and that the lender no longer has any claim to it. So when the day comes, and you make that last payment, be sure to celebrate—then keep an eye out for your Deed of Reconveyance. You’ve earned it!