Upon mortgage payoff, a Deed of Reconveyance legally removes the lender’s lien in trust deed states. It’s crucial for clear title. If your lender doesn’t issue or record it promptly, the old lien can remain on public record, causing significant issues when selling, refinancing, or transferring property. Homeowners should proactively confirm its filing to avoid legal and financial complications.
What Is a Deed of Reconveyance?
A Deed of Reconveyance is a legal document that officially removes the lender’s lien from your property title once your mortgage is paid in full. This applies specifically in trust deed states, where a third-party trustee holds the legal title during the loan term.
Why It’s So Important:
- It clears your property title.
- It proves full repayment of your mortgage.
- It’s required for selling, refinancing, or transferring ownership.
Typically, your lender or loan servicer must file the deed with the county recorder’s office within a certain number of days (usually 30–90 days) after full repayment.
What If the Lender Fails to File the Deed?
When the lender does not file the deed of reconveyance, it creates legal and logistical complications, including:
1. The Lien Remains on Your Title
Even though your mortgage is paid off, your property records still show the lender has a claim. This can:
- Create confusion during a title search
- Make buyers and title insurers cautious
- Delay or derail property transactions
2. Problems Selling or Refinancing
Before selling or refinancing, a title company runs a lien search. If the lien from your paid-off mortgage still shows:
- Buyers may back out
- Lenders may deny a refinance application
- You’ll have to scramble to fix the issue, possibly delaying the deal
3. Unexpected Legal Costs
Clearing an unfiled lien may involve:
- Hiring a title attorney or escrow company
- Filing additional legal paperwork
- Paying fees for delayed processing
Estimated costs: $200–$2,500, depending on complexity and state regulations.
Real-Life Scenario: A Common Mistake With Big Impact
Let’s say Ana, a homeowner in California, paid off her $280,000 mortgage in 2022. In 2025, she lists her home for sale. During the title search, the buyer’s agent discovers an old lien on the property—Ana’s lender never filed the Deed of Reconveyance.
Result:
- Buyer pulls out of the deal.
- Ana spends $1,200 on a real estate attorney to clear the lien.
- Closing is delayed by six weeks.
The issue could’ve been resolved easily—if noticed earlier.
How to Check If Your Deed of Reconveyance Has Been Filed
Here’s a quick self-checklist:
Step 1: Call Your County Recorder’s Office
Ask if a reconveyance deed has been recorded under your name and property address.
Step 2: Contact Your Lender or Trustee
Request a copy of the recorded Deed of Reconveyance. Make sure it includes:
- County recording stamp
- Your name and property address
- Statement confirming lien release
Step 3: Order a Title Search
Use a title company to run a full title report. This is the most accurate way to verify all liens are removed.
Free Tool Tip:
You can use online property record search portals in many counties. Some also offer downloadable copies for a small fee.
Deed of Reconveyance vs. Satisfaction of Mortgage
The concept is the same, but the terminology and process vary by state.
| Feature | Deed of Reconveyance | Satisfaction of Mortgage |
| Common in | Trust deed states (CA, AZ, WA) | Mortgage states (NY, NJ, FL) |
| Party Involved | Trustee files the deed | Lender files the satisfaction |
| Purpose | Removes lien and transfers title to borrower | Removes mortgage lien from record |
| Time Frame | 30–90 days post-payment | Varies by state (up to 90 days) |
What to Do If Your Lender Hasn’t Filed the Deed
If you discover the deed hasn’t been filed, take the following steps to correct the issue:
1. Contact the Lender’s Payoff Department
- Request that they immediately record the Deed of Reconveyance.
- Ask for written confirmation and a copy of the deed.
2. Submit a Formal Written Request
Include:
- Your loan number
- Property address
- Proof of payoff (e.g., settlement statement, canceled check)
3. Escalate If Needed
If the lender is unresponsive:
- File a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov
- Contact your state’s Attorney General or Department of Financial Regulation
4. Hire a Title Attorney
If all else fails, a real estate attorney can help:
- File a quiet title action to legally remove the lien
- Recover potential damages or legal costs (in some states)
Tips to Prevent Reconveyance Issues
Stay ahead of the problem with these practical strategies:
Be Proactive at Payoff
- Request confirmation from the lender that they’ll file the reconveyance
- Ask for a timeline for recording
Monitor Your Title
- Order a title check six months after paying off your loan
- Store a copy of the recorded deed in your files
Use Escrow or Title Companies
- When refinancing or selling, they can verify reconveyance filings on your behalf
Check Local Laws
- Some states allow homeowners to record the deed themselves
- Understand your state-specific deadlines and processes
FAQs
How long does a lender have to file a deed of reconveyance?
In most states, lenders have between 30–90 days to file the deed after final payment.
Will a missing reconveyance affect my ability to sell my home?
Yes. A missing reconveyance may cause title defects that delay or prevent the sale until resolved.
Can I file a deed of reconveyance myself?
In some states, yes. You’ll need the original deed and payoff confirmation from the lender.
What happens if the lender is out of business?
You’ll need to:
- Track the loan servicer or successor institution
- Work with a title attorney to clear the lien
Final Thoughts:
Paying off your mortgage should mark a new beginning, not the start of a title nightmare. A missing Deed of Reconveyance may seem like a small clerical error, but it can have serious consequences.
Check your title. Save your payoff documents. Follow up with your lender.
If something doesn’t look right, act quickly to avoid delays or legal issues down the road.
Need help? Use our Mortgage Lien Checker Tool, or reach out to a local title attorney for professional support.