What It Means
When the borrower obtains a loan against the property, the lender places a lien on the property. The lien represents the lender's equitable ownership of real estate. Once the borrower has paid off his/her loan, the lender releases its lien on the property and reconveys full title to the borrower. Reconveyance Deed is the legally accepted document where the lender or trustor is giving up its lien and all other claims it may have on the property. The title to the property is now free and clear. To perfect the reconveyance, the deed should be recorded.