Term Tuesday: Deed of Reconveyance

A Reconveyance Deed is an official document given to a borrower by the mortgage holder that indicates the borrower has been released from debt. A borrower will most commonly receive this deed when their debt has been paid in full. A Deed of Reconveyance also transfers title of property to the borrower.


The deed must be recorded in the public records of the county where the property is located. This allows it to be public record that liens on the property have been paid in full, which is important information if the property is being resold. Problems may arise if the deed is ever lost or destroyed. Lack of proof that the owners debt had been paid in full creates a cloud on the title of the property.