California Reconveyance Bond, Trust Deed Bond, and Deed of Trust Bond

California Reconveyance Bond, Trust Deed Bond, and Deed of Trust Bond Reconveyance Bond

Recently a colleague told me harrowing story about how he was delayed from selling his house due to a bizarre statutory requirement.  How many of you loyal Jurisco Surety Bond blog followers have ever heard of Reconveyance?  Ok,  don’t answer, some of you are probably attorneys or other Surety Bond blog authors.   But for those of you not already braised by the sharp heat of legal and lending esoteria . . . see if you can follow along while I reconstruct a story told to me by a California Title Attorney.

So, my friend inherited a house from his parents in Los Angeles, California and since he had no use for it as a rental property he wished to sell it.  As far as he knew the title was clear.  Evidently not so.  He soon learned that the selling process was being held up because his parents, although having paid off two debts related to house in the 1970’s, had never actually received the Reconveyance (also known as the trust deed or the deed of trust) This is proof that the debt has been fully satisfied. Without one it creates a title chaos and puts uncertainty on the title because there is no official document that shows loan has been paid.  This should be simple, right?  Just call the bank and ask for the appropriate paper work.  Evidently not so simple.  Both lending organizations were no longer in business and, after much searching, all my friend could find of these companies were the descendants of the company owners.  The omissions of our forebears were having a very real impact on the lives of their kin.  These descendants could still legally provide the reconveyance documents and trust deeds but they then take on a risk issuing the documents out of the blue because of the high risk of fraud.   An immovable impasse, right?  Evidently not so.  Because my friend, the one seeking the reconveyance, could procure a surety bond (named Reconveyance Bond or trust deed bond or deed of trust bond) that would protect the lender or the agent of the lender from fraud or illegal actions perpetrated by the party requesting the Reconveyance.

Reconveyance Bond particulars and requirements are elucidated in California Civil Code Section 2941.7 .  And see these articles on and for more information on reconveyance:

The Reconveyance bond (deed of trust bond or trust deed bond) are the only instruments protecting institutions and individuals alike from lawlessness, fraud and the kind of irresponsible record keeping that can only result from feckless nepotism.  The Surety Bond experts at Jurisco know this and are always there to answer your questions about reconveyance bonds, other surety bonds or how to make California a better place through fine accounting and contractual accountability.  Contact of their knowledgeable and friendly staff members today.

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