Deed Of Reconveyance: What It Is And How It Works

Although you would never guess it from the name, a reassignment deed can be an important document in your financial life. This type of deed transfers ownership of your property from your mortgage lender back to you after the loan is repaid. Here, we will take a closer look at the details of the reassignment deed and when to obtain the reassignment deed.

What is a reassignment deed?

A repayment certificate is a document that proves that you have paid off your mortgage loan. This represents the transfer of ownership from the mortgage lender to you.

While you were repaying your mortgage, you legally owned the property, but the lender held a mortgage lien, or bond, on the property. Once the loan is paid off, the lender must remove the lien. For this purpose, a reassignment deed will be issued.

“This document is called a mortgage satisfaction or reassignment deed in some states,” says Megan Hernandez, director of public affairs and marketing for the American Land Title Association.

What is mortgage satisfaction?

A mortgage satisfaction is another name for a reconveyance deed, and these documents have the same meaning. This confirms that the borrower has repaid the mortgage in full and that there are no liens on the home. Mortgage satisfaction documents often include details about the mortgage that has been paid off and information about the terms under which the lender will reduce the loan.

What is full retransmission?

A complete retransfer is also the same as a retransfer deed. This is a document that proves that the loan has been paid in full and that the mortgage lender has no liens on the property. In California, a reconveyance deed is known as a complete reconveyance form.

What is the difference between a release deed and a reassignment deed?

A release deed removes further obligations to a legally binding contract. Mortgage lenders can use this to indicate that you are no longer obligated to make a mortgage payment, but it can also be used in other situations, such as between an employer and an employee. Repayment deeds apply particularly to mortgages.

What information is included in a reassignment deed?

A deed of reconveyance typically includes:

• Homeowner/mortgage borrower name and address
• Lender/Trustee Name
• Legal description and parcel number of the property based on the original title deed
• Proof that the borrower has fulfilled his obligations to the lender and that the property secured by the mortgage now belongs to the borrower.
• Signatures of parties involved and seal of notary public

How the deed of reconveyance works

Creating and completing a retransportation bill requires multiple steps.

1. The lender will execute a reassignment deed. When you pay off your mortgage, your mortgage lender (also known as the “trustee”) will create a repayment deed. The lender will then sign this document and have it notarized. Documentation typically needs to be submitted within 30 to 60 days of final payment, Hernandez said.
2. The borrower receives and reviews the repayment certificate. When you receive your document, carefully review it to see if there are any errors that need to be corrected.
3. The borrower submits the deed. If your lender sends you the documents directly, you will need to submit them to your local recorder’s office.

Even if you are selling your home but have not yet paid off your mortgage, a reconveyance deed affects the final stages of the closing process. The money from the buyer will pay off the remainder of the loan, and then the mortgage will begin issuing. Certificate. In this case, the title company is usually responsible for the recording.

“In the run-up to closing, the title company will contact your lender and request a repayment statement that reflects everything you owe by the day of closing,” Hernandez says. “At closing, the title company will send a fee to your lender and proof of that payment to the buyer’s lender.”

Example of reconveyance process

Unless you buy a home all in cash, there’s a good chance you’ll still have a mortgage on the property. Let’s say you take out a $300,000 mortgage from a lender to buy a home. Your home itself serves as collateral while you repay your mortgage. However, once you have repaid your mortgage debt in full, your lender will issue you with a repayment deed.

Why do I need a reassignment deed?

If you’re selling your home, a reconveyance deed proves that you have clear title to the property and means there are no outstanding mortgages or other liens or encumbrances. Without a remortgage, a sale can become more difficult as buyers will want proof that title is free and clear.

However, a reassignment deed is required even if you do not plan to sell the property. This proves you have paid off your mortgage and prevents the lender from making a claim on the property.

How long will it take to receive my reassignment deed?

The time it takes to obtain a retransmittal varies by state and financial institution. However, it can typically take up to two months to receive your loan after it is fully repaid. There are often state laws that outline how long a lender must provide a repayment deed.

What happens if the reassignment deed is not recorded?

If no retransmission is recorded, there is no need to panic just yet.

“The act of paying off all the money you owe actually wipes out your mortgage,” Hernandez says. “A record of satisfaction is just evidence of success. If a consumer has documentation that shows they’ve paid off their mortgage, they don’t have to worry about lenders coming after them.”

If you are concerned about obtaining a repayment deed, ask your lender how the loan repayment and deed recording process will be handled. Lenders have an incentive to ensure they control the details of the deed, as they can be penalized if the process is not handled according to state guidelines. This could also mean statutory penalties and litigation.

Frequently asked questions about reconveyance