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AromaticTroubledDormouse
20:56
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LSDefine
Simple English definitions for legal terms
reconveyance
Read a random definition: debt financing
A quick definition of reconveyance:
Reconveyance: When someone borrows money to buy a house, they give the lender a piece of paper called a deed. This paper says that the lender owns the house until the borrower pays back the money. When the borrower pays back all the money, the lender gives the paper back to the borrower. This is called reconveyance. It means the borrower owns the house again.
A more thorough explanation:
Definition: Reconveyance means returning ownership of something to the original owner. This term is commonly used in real estate when a loan secured by the property is paid off, and the title is transferred back to the debtor.
For example, if someone takes out a mortgage to buy a house, the lender will hold the title to the property until the loan is fully paid back. Once the loan is paid off, the trustee (usually a title or escrow company) will manage the reconveyance of the title from the lender back to the debtor.
This process is important because it ensures that the rightful owner of the property has legal ownership and control over it. Without reconveyance, the lender would continue to hold the title even after the loan is paid off, which could cause confusion and legal issues.