Did you know that a reconveyance of a Trust Deed needs to be recorded: is that a surprise?

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/bK4

Did you know that a reconveyance of a Trust Deed needs to be recorded? This should not come as a surprise to anyone. Now that more and more creative sales are taking place, such as seller financing, this is important to let the buyers know, that once they paid off the loan to the seller, they need to have the Trust Deed reconveyed by the seller. The seller has to sign the Reconveyance; they need to notarize it and then take it to the County for Recording.

If this is not done, then the buyer s could be in a precarious position, when they try to sell the property. Hopefully the previous party is still somewhere accessible, willing and alive to re-convey the Trust Deed.

This is not an everyday issue; nevertheless it can create added challenges to a closing. Listing Agents should check with their Title Representatives when they take a listing to make sure the property does not hold any surprises. Buyer's agents should check as well to make sure that prior to finishing the negotiations they discover these potential minefields of the Escrow. Do not wait until it becomes a Surprise.

If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.  

 

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Rainmaker
84,468
Terri Adams-Scott
J. Rockcliff, REALTORS - Walnut Creek, CA
Realtor, Walnut Creek CA Real Estate

I know what you're talking about!  I had some sellers who paid off their loan and their title company never had it reconveyed.  It took about a month to track it and get it cleared up.  Great advice and a reminder for sellers to keep all documentation!

Apr 20, 2010 01:54 PM #1
Rainmaker
3,220,482
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Terri, I agree during escrow is not the time to waste 30+ days on straigthening out issues of this nature. It should be done in advance.

Apr 22, 2010 06:14 PM #2
Rainmaker
545,096
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

Hi Endre:

Well said...

My rule of thumb is that anything that affects a deed, needs to be recorded.

Apr 27, 2010 01:27 AM #3
Rainmaker
3,220,482
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Toula, well said it is a good rule to follow:))

Apr 27, 2010 07:56 PM #4
Rainmaker
1,116,466
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

Those creative sales also seem to be resulting in lots of creative scams. Remember, if it sounds too good to be true, it probably is too good to be true.

May 12, 2010 08:11 PM #5
Rainer
478,183
Not a real person
San Diego, CA

Reminds me of when I sold my first car. I didn't know that I should take the title to the DPH and have a new title issued to the buyer, so I just gave him the title with the car. Turns out that he used the car to rob a couple of grocery stores a week later, and the police came to visit me since the license plate was still registered to me.

May 22, 2010 06:23 PM #6
Rainmaker
3,220,482
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jim, good point, that is something that one needs to be cautious of as well.

May 22, 2010 06:32 PM #7
Rainmaker
3,220,482
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Russel, I had to chuckle at your situation, I am sure you did not find it funny at the time.

May 22, 2010 06:33 PM #8
Anonymous
lisa

is there a time limit as to when a reconveyance of a trust deed needs to be recorded? Lets say a seller reconveys a trust deed to a buyer and has it notarized.  How long can the buyer hold the deed of reconveyance before it must be recorded? is there a timelimit or expiration?  Must the trust deed be reconveyed if the buyer does not have it recorded within a certain timeframe?  Thank you  

Jul 07, 2011 09:27 PM #9
Ambassador
670,249
Rene Fabre
First American Title - Seattle, WA
Marketing in the Digital Age

Normally reconveyances need to be recorded within 30 days... but it varies from state to state. If they are not recorded or recorded late it can be a problem if you're selling or refinancing. Until the recon is recorded it shows up as a lien on the property. If the reconveyance never got recorded, and this happens mostly when it's a private loan, just contact a title company in your county and they'll help you out with the process. Get it done as soon as possible... things change, people pass away, banks get absorbed into other banks, etc.

Jul 10, 2011 06:03 AM #10
Rainmaker
3,220,482
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lisa, thank you for your question. I have Rene' a Title Guru here giving you the best answer. Let us know if you need clarification .

Rene' Thank you for your detailed explanation. This question and answer is worth doing a separate Blog post:)

Jul 10, 2011 07:56 AM #11
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Rainmaker
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Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
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