Reconveyance of Deed
Reconveyance is the term used to describe returning a title to the original owner.
In most situations, reconveyance takes place when the title of a deed for a property is returned to its original owner.
For this to happen, a reconveyance deed needs to be created so that the title can be transferred legally.
What Is a Reconveyance of a Deed?
A Reconveyance deed is an essential legal document needed when a property’s previous owner buys a home and pays a mortgage.
It clearly outlines who the title of the property belongs to.
By using a reconveyance deed, a mortgage lender can transfer the title of the property to the borrower once the loan used to pay for the property has been completely repaid.
Once that happens, the loan borrower will officially be the owner of the property.
This is especially important if the person who now has the title wishes to sell the home or property in the future.
Without a reconveyance deed registered in the county or recorder’s office, it will be difficult for the new homeowner to sell the property.
How Does Reconveyance Work?
A deed of reconveyance is only used once the mortgage or trust deed has been completely paid off by the borrower.
When that happens, a search of the title will demonstrate that the lien has been paid. That will ensure the lien is still not held against it, and it can be sold.
Then the deed of reconveyance can be issued, and the title passed to the previous homeowner.
As the final part of the process of selling the property, a deed of reconveyance is necessary. Without it, the homeowner can have problems in the future claiming proper ownership.
In general, a deed of reconveyance contains the following details:
- Name and address of the borrower.
- Name of the lending individual or entity.
- Information regarding the property and parcel number of the original deed.
- Evidence in the form of a document that states the borrower has completed their obligations and now owns the property.
- Each party’s signature
How a deed of reconveyance is managed varies by state. For instance, certain states use deeds of trust instead of a mortgage.
Before creating a deed of reconveyance, you should ensure all the obligations were fulfilled depending on the state where you reside.
Conveyance vs. Reconveyance
It’s essential to note the difference between conveyance and reconveyance.
Conveyance is the act of transferring ownership of property from one individual or entity to a new owner.
In this case, the new owner was never the owner of the property. Reconveyance covers the same act of transferring a title.
The key difference is that the person who receives the title was the previous owner of the property.
Deeds of Trust vs Mortgage
Paying off a mortgage or deed of trust allows for a deed of reconveyance to be created.
It’s important to know the difference between the two types of agreements.
A mortgage is an agreement between two parties. One party loans money to a borrower to purchase a home or another type of property.
A deed of trust, on the other hand, involves a third party.
Certain states use deeds of trust instead of mortgages to show how much money was borrowed to pay for a property.
A deed of trust can be considered more complicated than a mortgage, as it adds a neutral third party to the agreement.
This third party holds the title of the property until the borrower pays off the loan.
The third party, which can also be known as a trustee, will then give the title of the property to the new owner once it has been paid off.
Reconveyance is the term used to describe returning a title to the original owner.
In most situations, reconveyance takes place when the title of a deed for a property is returned to its original owner.
For this to happen, a reconveyance deed needs to be created so that the title can be transferred legally.
What Is a Reconveyance of a Deed?
A Reconveyance deed is an essential legal document needed when a property’s previous owner buys a home and pays a mortgage.
It clearly outlines who the title of the property belongs to.
By using a reconveyance deed, a mortgage lender can transfer the title of the property to the borrower once the loan used to pay for the property has been completely repaid.
Once that happens, the loan borrower will officially be the owner of the property.
This is especially important if the person who now has the title wishes to sell the home or property in the future.
Without a reconveyance deed registered in the county or recorder’s office, it will be difficult for the new homeowner to sell the property.
How Does Reconveyance Work?
A deed of reconveyance is only used once the mortgage or trust deed has been completely paid off by the borrower.
When that happens, a search of the title will demonstrate that the lien has been paid. That will ensure the lien is still not held against it, and it can be sold.
Then the deed of reconveyance can be issued, and the title passed to the previous homeowner.
As the final part of the process of selling the property, a deed of reconveyance is necessary. Without it, the homeowner can have problems in the future claiming proper ownership.
In general, a deed of reconveyance contains the following details:
- Name and address of the borrower.
- Name of the lending individual or entity.
- Information regarding the property and parcel number of the original deed.
- Evidence in the form of a document that states the borrower has completed their obligations and now owns the property.
- Each party’s signature
How a deed of reconveyance is managed varies by state. For instance, certain states use deeds of trust instead of a mortgage.
Before creating a deed of reconveyance, you should ensure all the obligations were fulfilled depending on the state where you reside.
Conveyance vs. Reconveyance
It’s essential to note the difference between conveyance and reconveyance.
Conveyance is the act of transferring ownership of property from one individual or entity to a new owner.
In this case, the new owner was never the owner of the property. Reconveyance covers the same act of transferring a title.
The key difference is that the person who receives the title was the previous owner of the property.
Deeds of Trust vs Mortgage
Paying off a mortgage or deed of trust allows for a deed of reconveyance to be created.
It’s important to know the difference between the two types of agreements.
A mortgage is an agreement between two parties. One party loans money to a borrower to purchase a home or another type of property.
A deed of trust, on the other hand, involves a third party.
Certain states use deeds of trust instead of mortgages to show how much money was borrowed to pay for a property.
A deed of trust can be considered more complicated than a mortgage, as it adds a neutral third party to the agreement.
This third party holds the title of the property until the borrower pays off the loan.
The third party, which can also be known as a trustee, will then give the title of the property to the new owner once it has been paid off.