Deed Of Reconveyance

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Definition of 'Deed Of Reconveyance'

A deed of reconveyance is a legal document that transfers ownership of a property back to the original owner. It is typically used when a mortgage loan is paid off in full, or when a property is foreclosed upon and then sold at a public auction.

The deed of reconveyance is signed by the lender (or the trustee in the case of a foreclosure), and it is recorded in the county where the property is located. Once the deed is recorded, the original owner's title to the property is restored.

A deed of reconveyance is important because it provides proof that the original owner has regained ownership of the property. It can also be used to clear any liens or other encumbrances that may have been placed on the property.

In some cases, a deed of reconveyance may be required by the lender as a condition of the loan. This is typically the case when the loan is being paid off early. In other cases, the lender may simply choose to issue a deed of reconveyance as a matter of course.

If you are the original owner of a property that has been foreclosed upon, you will need to obtain a deed of reconveyance from the lender in order to regain ownership of the property. The lender will typically provide you with the deed of reconveyance once the loan has been paid off in full.

If you are not the original owner of a property, you should not sign a deed of reconveyance unless you are sure that you understand the implications of doing so. A deed of reconveyance can have significant legal consequences, so it is important to consult with an attorney before signing one.

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