Reconveyance Deed
Definition:
A reconveyance deed is a legal document used to transfer title of real property back to the borrower once a mortgage or deed of trust has been fully paid off. It serves as proof that the lender no longer has a financial interest in the property. The reconveyance deed effectively releases the lien and restores full ownership rights to the borrower.
Reconveyance Deed Information
In a typical mortgage or deed of trust arrangement, a trustee holds the title to the property on behalf of the lender until the loan is repaid. Once the borrower completes all payments, the lender instructs the trustee to issue a reconveyance deed, which officially returns ownership to the borrower. This deed is then recorded in the county’s public records to show that the debt has been satisfied and the lien released. The reconveyance deed is an important step in clearing title, ensuring that no encumbrances from the previous mortgage remain. Failure to record a reconveyance deed can create title complications in future sales or refinancing.
Florida Legal Definition
In Florida, the equivalent process to a reconveyance deed occurs when a **satisfaction of mortgage** is filed, as Florida uses mortgages rather than deeds of trust. Under **Chapter 701 of the Florida Statutes**, lenders are required to record a satisfaction of mortgage within 60 days after the debt is paid in full. This filing releases the lien and confirms that the borrower now holds full legal title to the property. While Florida does not typically use trustees or reconveyance deeds, the purpose and effect are the same — clearing the title and confirming the borrower’s full ownership rights.
How It’s Used in Practice
In practice, reconveyance deeds are commonly used in states that operate under a deed of trust system, such as California or Texas. Once the loan is paid off, the trustee prepares and records the deed to formally return title to the borrower. In Florida, lenders instead prepare and record a satisfaction of mortgage. Title companies, attorneys, or closing agents verify that this process is completed to ensure the borrower’s title is free from liens. Recording the reconveyance or satisfaction is essential for confirming clear title and avoiding delays in future transactions.
Key Takeaways
- A reconveyance deed transfers title back to the borrower after a loan is paid off.
- Releases the lender’s lien and confirms full ownership by the borrower.
- In Florida, this process is completed through a satisfaction of mortgage under Chapter 701 of the Florida Statutes.
- Recording the reconveyance or satisfaction ensures clear title and avoids future title disputes.
- Essential for completing the mortgage payoff process and restoring full ownership rights.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron & Shea, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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