The term reconveyance may even be unfamiliar to seasoned buyers, but your Lang Realty broker will know exactly what it means to complete your residential transaction.
What is a reconveyance fee in real estate and what could it mean?
It’s a legal document that transfers the property’s title from the lender to the borrower once the mortgage has been paid. If the seller hasn’t settled this with the lender, or there are any outstanding liens, then the property isn’t free and clear and could delay your closing.
Reconveyance fees are collected by the title company or a real estate lawyer and paid to the county. The buyer usually pays the fee, so it’s important to ask your real estate broker how much that will be so you can factor that into your closing costs if necessary.
What is a partial reconveyance, and can it become an issue in your closing?
That’s unlikely. But it could delay closing until the seller pays off the full loan. And as the buyer, you’ll have to wait until the deed is reconciled. Your broker will know in advance if that could happen and advise you, so there are no surprises at closing.
What is a full reconveyance?
That’s the legal document issued when the seller’s loan is paid off. Clearing any liens from the home’s title is exactly what you and your real estate broker want to see so you can proceed.
