Reconveyance is the process of transferring title from a trustee back to the borrower after a loan secured by a deed of trust has been fully paid. When the borrower originally took out the loan, they conveyed bare legal title to the trustee as security. Now that the debt is satisfied, the trustee executes a reconveyance deed (also called a deed of reconveyance, release of deed of trust, or full reconveyance) that transfers legal title back to the borrower and removes the lien from the property.
The reconveyance document is recorded with the county recorder's office, creating a public record that the lien has been released. This is functionally equivalent to a satisfaction of mortgage in states that use mortgages rather than deeds of trust. Both documents serve the same purpose — clearing the lender's claim from the property's title so the owner has clear title.
State laws typically require reconveyances to be processed within a specific timeframe after the loan is paid off. In many states, the lender or trustee must record the reconveyance within 30 to 60 days of payoff. Failure to record a timely reconveyance can cloud the title — the public records still show the lien even though the debt has been paid. This can create problems when the owner tries to sell or refinance, as the title company must verify the lien has been released.
Unreleased deeds of trust from old paid-off loans are a common title search finding. Perhaps the original lender merged with another bank, or the trustee changed, or the reconveyance was simply never processed. Resolving these requires tracking down the successor institution or trustee and requesting the reconveyance — a process that can be time-consuming but is essential for delivering clear title.
At closing, when the seller's existing deed of trust is paid off, Beycome Title processes the payoff and monitors for the reconveyance. We track the recording of every lien release to ensure the seller's old debt is properly cleared from the record. For buyers, this means you receive clean, insured title with no lingering liens from the seller's prior financing. Get your free title quote.