Deed Of Reconveyance
This document is prepared by (and after recording returned to): Name: [Trustee’s Name] Address: [Return Address], [Return City], [Return State] [Return ZIP] Phone: [Return Phone] APN/Property account number: [Parcel Number] Above this line is reserved for official use only
[Trustee’s Name], [Who Trustee], with a mailing address at [Trustee Address], [Trustee City], [Trustee State] [Trustee ZIP](the "Trustee") does hereby certify and declare that the loan in the amount of $[Loan Amount], secured by the Deed of Trust recorded on [Trust Deed Date] in the [Recording Info] made by [Trustor’s Name], [Who Trustor], with a mailing address at [Trustor Address], [Trustor City], [Trustor State] [Trustor ZIP] (the "Trustor"), and
[Borrower’s Name], [Who Borrower], with a mailing address at [Borrower Address], [Borrower City], [Borrower State] [Borrower ZIP](the "Borrower"), has been FULLY PAID and SATISFIED. There are no outstanding liens or other encumbrances pending against the property. The Trustee hereby reconveys under the Trustor, without warranty, all rights, titles, and interests acquired by the Trustee under said Deed of Trust for the following property: [Property Description], located at [Property Address], [Property City], [Property State] [Property ZIP].
The Borrower is the recipient of this Deed of Reconveyance and any subsequent documents relating to the property.
Date: [Effective Date]
The Trustee:
[Trustee’s Name]
Signatory
[Trustee’s Name]
Signature
What Is a Deed Of Reconveyance?
A Deed Of Reconveyance in the United States transfers an interest in property between the named parties and records the terms of that transfer.
In the approximately 30 states that use the deed-of-trust system for securing real property loans (including California, Texas, Virginia, and Colorado), the borrowing transaction involves three parties: the trustor (borrower), the beneficiary (lender), and the trustee (neutral third party that holds bare legal title). When the loan is paid in full, the trustee is obligated to execute and record a deed of reconveyance, transferring the trustee's legal title back to the borrower. California Civil Code Section 2941 imposes strict timelines, requiring the trustee to execute and record the reconveyance within 21 days of receiving proof of full payment, with penalties of up to $300 for failure to comply. Other states have similar statutory requirements.
Recording the deed of reconveyance in the county recorder's office where the property is located is essential. Without it, the public record continues to show a lien against the property, which can prevent the owner from selling the property, refinancing, or obtaining a home equity loan. Title insurance companies will flag the unreleased deed of trust as a title defect that must be cleared before closing any subsequent transaction.
When Do You Need a Deed Of Reconveyance?
A Deed of Reconveyance is needed in the following situations: when a homeowner makes the final payment on their mortgage and the loan is paid in full; when a property is refinanced and the original loan is paid off with proceeds from the new loan; when a property is sold and the existing mortgage is paid off from the sale proceeds at closing; when a borrower receives a payoff amount from the lender and makes a lump-sum payment to satisfy the debt; and when a deed of trust is released as part of a short sale, loan modification, or settlement agreement with the lender.
Additional scenarios include situations where the original trustee has gone out of business or cannot be located, requiring a substitution of trustee before the reconveyance can be executed, situations where the borrower paid off the loan years ago but the reconveyance was never recorded (a "zombie lien"), and estate settlements where the decedent's property has a paid-off mortgage but the reconveyance was not recorded before death.
Failure to obtain and record a deed of reconveyance creates a cloud on the property title that can persist for decades. Property owners who discover an unreleased deed of trust when trying to sell may face delays of weeks or months while the issue is resolved. In some cases, the lender may have merged with another institution, gone out of business, or lost records, making the reconveyance process significantly more complex and potentially requiring a quiet title action in court.
What to Include in Your Deed Of Reconveyance
A legally effective Deed of Reconveyance must include the following elements:
Trustee identification -- the full legal name and address of the trustee executing the reconveyance. If the original trustee has been substituted, the substitution of trustee document should be referenced.
Trustor identification -- the full legal name of the borrower to whom title is being reconveyed, matching the name on the original deed of trust.
Beneficiary identification -- the full legal name of the lender or loan servicer whose security interest is being released.
Property description -- the full legal description of the property (metes and bounds, lot and block, or government survey description), matching the description in the original deed of trust. The street address should also be included for reference.
Original deed of trust reference -- the recording information for the original deed of trust, including the document number, book and page number, recording date, and the county recorder's office where it was recorded.
Recital of satisfaction -- a statement that the obligations secured by the deed of trust have been fully satisfied and that the trustee reconveys all right, title, and interest in the property to the trustor.
Loan identification -- the original loan number, loan amount, and date of the deed of trust being reconveyed.
Trustee's signature and notarization -- the trustee's authorized signature, which must be notarized for recording purposes. Most states require notarization for all instruments to be recorded in the real property records.
Recording information -- the document must be in a format acceptable for recording in the county recorder's office, meeting state-specific requirements for paper size, margins, font size, and recording fees.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Deed Of Reconveyance (United States) [Legal document template]. Forms Legal. https://forms-legal.com/usa/real-estate/property/deed-of-reconveyance
"Deed Of Reconveyance (United States)." Forms Legal, 2026, https://forms-legal.com/usa/real-estate/property/deed-of-reconveyance.
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title = {Deed Of Reconveyance (United States)},
year = {2026},
howpublished = {\url{https://forms-legal.com/usa/real-estate/property/deed-of-reconveyance}},
note = {Free legal document template. Based on Statute of Frauds (real property conveyances must be made in writing)}
}Also available for these jurisdictions:
Frequently Asked Questions
A deed of reconveyance is a document that transfers legal title to real estate back to the borrower once a loan secured by a deed of trust has been fully repaid. In states that use deeds of trust rather than mortgages, a third party called a trustee holds legal title to the property as security for the loan while the borrower repays it. When the borrower pays off the debt, the lender, or beneficiary, instructs the trustee to release the security interest, and the trustee issues and records a deed of reconveyance, which clears the deed of trust from the title and confirms the borrower now holds clear title. The document is important because it removes the lender's claim from the public record, allowing the owner to sell or refinance without the old loan clouding the title. Because a missing reconveyance can cause title problems later, borrowers should confirm that a deed of reconveyance was recorded after paying off a loan secured by a deed of trust.
A deed of reconveyance is issued by the trustee under a deed of trust, acting on instructions from the lender after the loan is fully paid. When a borrower satisfies the debt, the lender, known as the beneficiary, notifies the trustee that the obligation has been met and requests a release, and the trustee then prepares, signs, and records the deed of reconveyance to transfer legal title back to the borrower and remove the deed of trust from the record. The trustee is typically a title company, an attorney, or another neutral party designated in the original deed of trust. The process differs from a mortgage state, where the lender records a satisfaction of mortgage or release directly. Because the trustee acts only after the lender confirms full payment, borrowers should ensure the lender provides the payoff confirmation and that the trustee records the reconveyance. If the reconveyance is not recorded, the borrower should follow up, since an uncleared deed of trust can interfere with a future sale or refinance.
If a deed of reconveyance is not recorded after a loan is paid off, the deed of trust remains on the property's title in the public record, creating a cloud that can interfere with selling or refinancing the property. Even though the debt is satisfied, the unreleased security interest makes it appear that the lender still has a claim, and a title company will flag it during a later transaction, often requiring the owner to obtain the reconveyance before closing. Resolving the issue years later can be difficult if the original lender has merged, been acquired, or gone out of business, sometimes requiring extra effort to track down the proper party or a court action to clear title. Because of these risks, borrowers should confirm shortly after paying off a loan that the trustee recorded the deed of reconveyance and obtain a copy. Promptly verifying the recording prevents a lingering lien from causing problems when the owner later sells or refinances the property.
A deed of reconveyance and a satisfaction of mortgage both clear a paid-off loan from a property's title, but they apply in different legal frameworks. A deed of reconveyance is used in states that secure loans with a deed of trust, where a trustee holds legal title and issues the reconveyance to return title to the borrower once the lender confirms the debt is paid. A satisfaction of mortgage, also called a release of mortgage, is used in states that use mortgages, where the lender holds a lien rather than title, and the lender records the satisfaction to release the lien after payoff. The end result is similar: the security instrument is removed from the public record so the owner holds clear title. The difference reflects whether the state uses the deed of trust or mortgage system. Because the document and the party who issues it depend on the state's approach, borrowers should confirm which instrument applies to their property and ensure it is recorded after they pay off their loan.
You do not usually need a lawyer to obtain a routine deed of reconveyance, because the trustee handles preparing and recording it after the lender confirms the loan is paid, but legal help can be useful if problems arise. In a normal payoff, the borrower's main task is to ensure the lender provides payoff confirmation and that the trustee records the reconveyance, then to obtain a copy for their records. Legal assistance becomes valuable when a reconveyance was never recorded, the original lender no longer exists, or a title company flags an uncleared deed of trust during a sale or refinance, since clearing an old lien may require tracking down the proper party or a court action. An attorney or title company can resolve these title defects. Because the routine process is administrative, most borrowers do not need legal help to obtain a reconveyance, but they should verify the recording, and consult a professional if an old, unreleased security interest clouds the title later.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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