Deed of Release

A Deed of Release (also known as a Deed of Reconveyance) is a legal instrument executed by a lien holder (Lender) to release a lien on real property. A Lender holding a lien on real property in the form of a Mortgage or Deed of Trust must execute a Deed of Release once the Lender has been paid in full by the Grantor of the Deed of Trust. In most states, Lenders are required to execute a Deed of Release within a certain time period after the loan is paid off.

A Deed of Release reconveys all rights granted to a trustee under a Deed of Trust back to the Grantor.  Once the Grantor has repaid the Lender all amounts owed under a Deed of Trust, the Deed of Release is executed to clear the title from the Lender's lien.

How to Execute a Deed of Release or Reconveyance
Before the trustee of a Deed of Trust will execute a Deed of Release, the promissory note held by the Lender must be paid in full.  Once the Note is paid in full, the Lender is required to execute a Deed of Release pursuant to the laws of the state where the property is located.  The Deed of Release must:
(1) Contain a notation that the Promissory Note has been paid in full;
(2) Be in a form acceptable to all parties involved;
(2) Contain signatures of all parties involved;
(3) Be recorded by the Lender in the official public records in the county where the property is located;

The borrower should request a copy of the recorded Deed of Release and keep the copy for his or her records.
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