When it comes to residential and commercial real estate transactions, the process of reconveyance is especially important. While the procedure can vary from state to state, it is paramount that any buyer of property understands the process and their rights in the event of a reconveyance. This article will offer an overview of common questions and answers surrounding reconveyance, with a specific focus on property owned and situated in Chicago, Illinois.

Reconveyance is a process by which a buyer of real estate or lien party can re-manifest a deed of trust, mortgage, deed of sale or other related lien instrument back to the seller. Generally, this occurs when the buyer of the real estate pays off their loan in full. Once the buyer has completed their payment obligations to the bank or lender, the bank will then reconvey the property back to the seller.

What are the common forms of reconveyance?

When it comes to forms of reconveyance, there are two common ways in which a lender will reconvey the deed back to the seller. The bank or lender can opt to use a "promissory note" reconveyance, whereby they will issue a promissory note for the amount of the sale to the seller. Alternatively, they can use a "direct reconveyance", whereby they will transfer the deed of trust, deed of sale or lien instrument directly back to the seller.

Who is typically responsible for the preparation of documents?

In most cases, it is the responsibility of the borrower or seller to prepare the necessary paperwork for reconveyance. This may include forms such as assignment of deed of trust and promissory note, depending on which reconveyance method is chosen. The documents should be signed by the borrower, lender, and seller to make sure the deed is officially transferred from one party to another.

How is the transfer of deed recorded?

Once the paperwork is prepared and signed, the next step is to either mail or submit the forms to the county or state recorder in the location of the real estate. Typically, the local recorder office will charge the buyer or seller a nominal fee for recording the transfer.

Where can I find a lawyer to help me with the reconveyance process?

If you are a buyer or seller in the Chicago area and need assistance with the intricacies of the reconveyance process, it is important to consult with an attorney who is knowledgeable and experienced with local real estate law. UpCounsel offers access to an extensive network of experienced lawyers who are well-versed with the reconveyance process and local regulations. At UpCounsel, we make sure our clients receive high quality, cost-effective legal services from experienced lawyers. With UpCounsel, you can have assured access to trustworthy professionals who provide ongoing legal support throughout the year.



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