Reconveyance Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Reconveyance, written in plain English, along with examples of how it is used.
What is Reconveyance?
(n) Reconveyence is the process by which a title to a property held by a person as trustee or mortgage is returned to the owner on his request , up on the fulfillment of conditions for which such title was assigned to him
History and Meaning of Reconveyance
Reconveyance is the process of transferring the title of a mortgaged property back to the owner once the debt has been fully paid. When a person obtains a mortgage to purchase a property, the mortgage lender holds the title to the property as security for the loan. This allows the lender to foreclose on the property if the borrower defaults on the mortgage. Once the mortgage is paid off, the borrower is entitled to the return of the property's title.
Reconveyance is a legal document that is recorded with the county recorder's office to provide public notice that the title to the property is being transferred back to the borrower. It is important to note that while the property owner may physically possess the title to the property, the mortgage lender retains a lien against the property until the mortgage is fully paid off.
Examples of Reconveyance
John purchased a house with a mortgage and made regular payments until the debt was fully paid off. He then requested that the lender reconvey the title to his name.
Mary inherited a property from her late father that had a mortgage on it. She paid off the mortgage and requested a reconveyance to transfer the property title into her name.
After obtaining a loan to purchase a commercial property, the borrower made regular payments until the debt was repaid. The lender executed a reconveyance to transfer the property's title back to the borrower.
Legal Terms Similar to Reconveyance
Mortgage Release: The legal document used to release the lien on a property once a mortgage has been paid off.
Deed of Reconveyance: A legal document used to transfer the title of a property back to the borrower.
Satisfaction of Mortgage: A legal document that acknowledges that a mortgage loan has been fully paid off and the lien on the property has been released.