Question 1

What is a reconveyance deed?

Accepted Answer

A reconveyance deed (also called a deed of reconveyance) is a document that transfers title back to the borrower after a deed of trust has been paid in full. In states that use deeds of trust (rather than mortgages): the borrower transfers title to a trustee as security for the loan, when the loan is paid: the trustee executes a reconveyance deed, returning title to the borrower. Florida primarily uses mortgages (not deeds of trust): the equivalent document is a satisfaction of mortgage (Section 701.04).

Question 2

How does a satisfaction of mortgage work in Florida?

Accepted Answer

FL satisfaction (Section 701.04): when a mortgage is paid in full, the lender must: execute a satisfaction of mortgage (acknowledging that the debt has been paid and the mortgage is released), and record the satisfaction in the official records (within 60 days of full payment). If the lender fails to record the satisfaction: the borrower can: send a written demand (the lender has 30 days to comply), and if the lender still fails: the borrower can file a lawsuit (the lender is liable for $500 in damages plus attorney fees).

Question 3

What problems arise from unrecorded satisfactions in Florida?

Accepted Answer

Problems: cloud on title (the mortgage continues to appear as a lien on the property, even though it has been paid), difficulty selling (the buyer’s title search will show the unsatisfied mortgage as a lien), refinancing issues (a new lender may refuse to close until the old mortgage is satisfied of record), and title insurance (the title company may require the satisfaction to be recorded before issuing a policy). Resolution: the borrower should contact the former lender and demand a satisfaction; if unsuccessful, file a lawsuit under Section 701.04.

Reconveyance Deed

Reconveyance Deeds and Mortgage Satisfaction

FL Equivalent

Lender Failure

Unrecorded Problems

Related Terms

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