When buying or selling property, it’s important to understand the complexities of the process. As you move through the various steps to secure the sale, you may come across the term “reconveyance.” Reconveyance is essential to the real estate transaction, so it helps to know what it is and how it works.

Reconveyance is the transfer of property back to its original owner. This is either done through a deed in which the new owner returns the property to its original owner, or it is done through a deed of reconveyance in which the owner of the property agrees to a transfer back to its original owner. Typically, reconveyance occurs after the original owner has taken out a mortgage or loan against the property and pays off the loan or mortgage in full.

When a homebuyer purchases a property and takes out a mortgage loan, the lender holds the title to the property until the loan is paid off. This is why, before a mortgage loan can be closed, a lien is placed on the title of the property and held until all of the borrower’s obligations to the lender are met.

Once the borrower has paid off the loan, they may in some instances need to execute a deed of reconveyance. A deed of reconveyance is a document signed by the borrower and notarized by the lender who holds the title to the property. After the document has been signed, it is submitted to the county recorder’s office, where it is officially recorded and the title to the property is transferred back to the borrower.

Reconveyance is an important part of the real estate transaction process. When a buyer takes out a mortgage loan, the lender holds the title until the loan is paid off. Once the loan is paid off, the lender must execute a deed of reconveyance to transfer the title back to the buyer. Reconveyance is also important in ensuring the security of property rights of owners, and for recording such changes in the local public records.

Understanding the process of reconveyance can help to ensure that the right steps are taken in transferring property back to its original owner. It is important to consult with an experienced attorney when considering reconveyance, especially when dealing with property located within New York. Local attorneys are experts in the regulations and paperwork required for reconveyance and can guide you through the process.

Reconveyance can be complicated, but with the help of the right legal counsel, it doesn’t need to be. To make sure the process is done correctly, it’s important to work with attorneys who are well-versed in New York law and experienced in real estate transactions. That way, you can ensure that your property rights are secure and everything goes as planned in the transfer process.



Mortgage Loan,

Deed of Reconveyance