A deed of reconveyance is a type of real estate document. This document signifies that a borrower has fulfilled the repayment of the mortgage.
Mortgages and trust deeds are examples of documents that necessitate a deed of reconveyance upon satisfaction.
A deed of reconveyance differs from liens and mortgages. It acts as evidence of mortgage clearance, whereas liens and mortgages represent claims or rights against a property.
Mortgages require a release deed, and mechanic’s liens need a lien release, which are examples of the distinctions.
Three features popular in deeds of reconveyance include the recording in public records, the involvement of a trustee, and the clearance of the property title. Public records for property transactions in Bangkok include the Land Department’s registry.
Trustees often engage in real estate transactions involving foreign investors. The clearance of the title enables the sale or transfer of property without mortgage encumbrances.
Common features in deeds of reconveyance entail the necessity for a notary, the requirement for borrower and lender signatures, and the legal description of the property. Notaries in Bangkok validate documents like deeds of reconveyance.
Borrower and lender signatures must authenticate the satisfaction of the mortgage. Legal descriptions provide precise property boundaries and identifications.
Unusual features of deeds of reconveyance include their specific application to trust deed states, the potential for expedited electronic filing, and their role in title insurance requisites. Bangkok, while not a trust deed state, sees international transactions that can involve such mechanisms.
Electronic filing, though not universally available, offers a quicker process in some jurisdictions. Title insurance companies often require a recorded deed of reconveyance before issuing a policy.
Unique features encompass the trustee’s role in reconveyance, the release from financial obligation documented, and the specific acknowledgment in the deed that the debt is fully paid. The trustee, different from the lender, physically releases the claim on the property.
This release from financial obligation marks the end of the mortgage contract. The acknowledgment in the deed assures no outstanding debt exists on the property.
While both release deeds and deeds of reconveyance serve to clear titles, the deed of reconveyance is unique in marking the full repayment of a mortgage, specifically in scenarios involving a trustee. Release deeds may apply to various property encumbrances, but a deed of reconveyance directly relates to mortgage satisfaction.
For more detailed definitions and explanations on real estate terminology, visit our glossary about Bangkok real estate.