Question 1

What is a deed of reconveyance?

Accepted Answer

A deed of reconveyance is a legal document recorded with the county recorder's office that releases a deed of trust from the chain of title for a piece of real property. It is executed by the trustee named in the original deed of trust after the borrower has paid off the underlying loan in full. The reconveyance transfers legal title back from the trustee to the borrower (the trustor), removing the lender's security interest from the public record. Without a recorded reconveyance, the deed of trust remains as a cloud on title even though the loan has been paid, which can prevent the borrower from selling or refinancing the property.

Question 2

Why is a deed of reconveyance necessary?

Accepted Answer

When a borrower obtains a mortgage loan in a deed-of-trust state, three parties are involved: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee) who holds legal title to the property as security for the loan. Recording the deed of trust gives public notice of the lender's security interest. When the loan is paid off, that security interest must be formally released — and the only way to do that is for the trustee to record a deed of reconveyance. Until the reconveyance is recorded, title to the property remains technically encumbered, even if the underlying debt is gone.

Question 3

Which states use deeds of reconveyance?

Accepted Answer

Deeds of reconveyance are used in states that follow the deed-of-trust model rather than the mortgage model for real estate loans. Deed-of-trust states include California, Texas (which uses 'release of lien' terminology), Arizona, Colorado, Nevada, Washington, Oregon, Idaho, Utah, Virginia, North Carolina, Tennessee, Missouri, Mississippi, Alaska, Arkansas, and the District of Columbia, among others. Mortgage states (such as New York, New Jersey, Pennsylvania, Florida, Ohio, and Illinois) use a satisfaction of mortgage instead. The substance is similar, but the procedural mechanics differ.

Question 4

Who signs the deed of reconveyance?

Accepted Answer

The trustee named in the original deed of trust signs the reconveyance — not the lender and not the borrower. The trustee is typically a title insurance company, a trust company, or an attorney designated in the deed of trust. After the loan is paid in full, the lender (beneficiary) sends the trustee a 'request for full reconveyance' along with the original promissory note marked paid. The trustee then prepares, signs, and records the deed of reconveyance, returning the recorded document to the borrower.

Question 5

How long does it take to receive a deed of reconveyance after paying off my loan?

Accepted Answer

The timeline varies by state and lender. Most states require lenders to instruct the trustee to record a reconveyance within 30 to 90 days after the loan is paid off. California, for example, requires the beneficiary to deliver a request for reconveyance to the trustee within 30 days of payoff (Cal. Civ. Code §2941), and the trustee must record the reconveyance within 21 days after receiving the request. Failure to comply can result in statutory penalties — California imposes a $500 penalty plus all damages caused by the delay. If you do not receive your recorded reconveyance within a reasonable time, contact the lender's payoff department or title company in writing.

Question 6

What happens if the deed of reconveyance is never recorded?

Accepted Answer

If a reconveyance is never recorded, the deed of trust remains as a recorded encumbrance on the property's title indefinitely, even though the loan was paid off. This creates serious problems when the owner tries to sell or refinance: title companies will refuse to insure the title, and buyers will refuse to close until the encumbrance is removed. To resolve an old, unreleased deed of trust, the owner can: (1) contact the original lender (or its successor) and request a reconveyance; (2) if the lender no longer exists, file an action to quiet title; or (3) in some states, use a statutory procedure for releasing dormant deeds of trust through a sworn affidavit.

Question 7

Where do I record a deed of reconveyance?

Accepted Answer

Recording is done with the county recorder, register of deeds, or land records office in the county where the property is located. Most counties charge a recording fee of $15 to $50 per document, with additional charges per page in some jurisdictions. Many counties now accept electronic recording (e-recording) through services like Simplifile or CSC. Always confirm the local recording requirements: some counties require specific margins, font sizes, and indexing information.

Question 8

What is the difference between a deed of reconveyance and a release of lien?

Accepted Answer

The two terms describe similar but procedurally distinct documents. A deed of reconveyance is executed by a trustee and is used in states that follow the deed-of-trust model. A release of lien (sometimes called a release of mortgage or release of deed of trust) may be executed by either a trustee or a lender, depending on the jurisdiction. Texas, for example, uses 'release of lien' terminology even though it is a deed-of-trust state. The substantive effect is the same: both documents formally release the lender's recorded security interest.

Question 9

Do I need to pay a fee for a reconveyance?

Accepted Answer

Most lenders include a reconveyance fee in their loan payoff statement, typically $50 to $150. This fee covers the trustee's preparation and recording of the document. Some states cap reconveyance fees by statute. The fee is in addition to the actual recording fee charged by the county recorder. If your payoff statement does not itemize a reconveyance fee, ask the lender to confirm whether one will be charged separately.

Question 10

What if my original lender has been acquired or gone out of business?

Accepted Answer

When the original lender has been merged into another bank, sold to a new servicer, or gone out of business, the right to issue a reconveyance follows the loan. The current servicer or owner of the loan is responsible for processing the payoff and ordering the reconveyance. If the lender has gone out of business and the loan was not transferred, the borrower may need to pursue a quiet title action in court — a lawsuit asking a judge to declare that the deed of trust is extinguished and order the county recorder to clear the title.

Question 11

Can I prepare my own deed of reconveyance?

Accepted Answer

Generally, no. The deed of reconveyance must be signed by the trustee named in the original deed of trust, not by the borrower. Borrowers cannot self-execute a reconveyance because they have no legal authority to release the lender's security interest. However, our template is designed for use by trustees, lenders, and title companies who need a properly formatted, attorney-reviewed reconveyance form. Borrowers can use our resources to understand the process and to communicate effectively with their lender's payoff department.

Question 12

Should I keep my original deed of reconveyance after recording?

Accepted Answer

Yes. Once the deed of reconveyance is recorded, the county recorder will return the original (or a recorded copy) to the address indicated in the document. Keep this in your important papers along with your original deed, title insurance policy, and final loan payoff statement. While the recorded version in the county records is the official document, having your own copy makes it much easier to demonstrate clear title in any future transaction.

Question 13

Does a deed of reconveyance affect my credit?

Accepted Answer

The reconveyance itself does not appear on your credit report. However, the underlying loan payoff will be reported by the lender to the credit bureaus, and the closed mortgage account will reflect a zero balance. A paid-off mortgage in good standing is generally beneficial to your credit profile because it demonstrates a successful long-term repayment history. The recording of the reconveyance simply clears the title; it does not separately impact credit.

Question 14

What if there are multiple loans on my property?

Accepted Answer

Each separate loan secured by the property requires its own reconveyance. If you had a first mortgage and a second mortgage (or a HELOC), each lender's deed of trust must be released by a separate recorded reconveyance. When refinancing or selling, your title company will pull a title report identifying every recorded encumbrance and ensure that each one is released as part of the closing process.

Feature	Deed of Reconveyance	Satisfaction of Mortgage
Used in	Deed-of-trust states (CA, TX, AZ, etc.)	Mortgage states (NY, NJ, FL, OH, etc.)
Signed by	Trustee	Lender (mortgagee)
Underlying instrument	Deed of trust	Mortgage
Purpose	Release lender's security interest	Release lender's security interest
Recording required	Yes	Yes

Free Deed of Reconveyance Forms

What Is a Deed of Reconveyance?

Clear Title

Recorder-Ready

State Compliant

Form Preview

Full Reconveyance

Recording Requested By / Return To

Original Deed of Trust

Trustor (Borrower)

Beneficiary (Lender)

Trustee

Property Description

Trustee Certification

Key Components

Recording Header

Reference to Original Deed of Trust

Trustor, Beneficiary, and Trustee

Legal Property Description

Reconveyance Language

Trustee Signature

Notary Acknowledgment

Recording Information Block

The Trustee's Role

How to Obtain a Deed of Reconveyance

Recording the Deed

Reconveyance vs. Satisfaction of Mortgage

Sample Deed of Reconveyance

Frequently Asked Questions

Official Resources

Create Your Deed of Reconveyance