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RECONVEYANCE BY TRUSTEE OF SURPLUS PROPERTY AFTER PAYMENT OF ALL DEBTS

RECONVEYANCE BY TRUSTEE OF SURPLUS PROPERTY AFTER PAYMENT OF ALL DEBTS

THIS RECONVEYANCE is made at??????on this??????day of??????20????between A son of               resident of??????(hereinafter called "the trustee") of the ONE PART and B son of??????resident of??????(hereinafter called "the debtor") of the OTHER PART.

 

WHEREAS

 

(1) By a deed of assignment dated??????and expressed to be made between the said B of the FIRST PART (herein called the debtor), A of the SECOND PART (herein called the Trustee) and such of the creditors of the debtor as should assent thereto of the THIRD PART hereinafter called the said deed, whereby the debtor assigned all his property to the said A, upon the trust herein contained for the benefit of the creditors of the debtor, who should assent thereto and it was provided in the said deed that if any time all debts and all other costs, charges, expenses payable under or by virtue of the said deed should be paid by the operation of the trust thereof or otherwise howsoever, the trustee will reconvey the surplus property to the debtor.

 

(2) All debts, and all other costs, charges and expenses payable under or by virtue of the said deed have been paid and the property more particularly described in the Schedule hereto, hereinafter referred to as the said property, has remained surplus with the trustee

 

(3) The debtor has requested the trustee to reconvey the said property to him freed and discharged from the trust of the said deed which the trustee has agreed to do. 

 

 

NOW THIS DEED WITNESSETH AS FOLLOWS

 

(1)In consideration of the premises and in pursuance of clause in the said deed for reconveyance of surplus property, the trustee hereby conveys unto the debtor the said property and TO HOLD the same unto the debtor freed and discharged from the trusts of the said deed

 

(1)The debtor hereby releases and discharges the trustee from the trusts of the said deed and hereby covenants to save harmless and keep indemnified the trustee from all claims, actions, demands, proceedings, costs and expenses, whatsoever, in respect of the said property and of the acts done by him in relation to the said property. 

 

IN WITNESS WHEREOF, the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written

 

   Schedule

WITNESSES Signed and delivered by A, the within named trustee

1 .

2. Signed and delivered by B, the within named debtor

  II. COMPROMISE DEEDS   

 

GUIDELINE

Guidelines for Drafting a Reconveyance by Trustee of Surplus Property After Payment of All Debts:

A Reconveyance by Trustee of Surplus Property is typically used in the context of a deed of trust or a mortgage when a trustee is appointed to hold property as collateral for a loan. Once all debts secured by the property are paid off, the trustee reconveys the property to the borrower or property owner. Here are guidelines for drafting such a document and common mistakes to avoid:

Identification: Clearly identify the parties involved, including the trustee, borrower, and any other relevant individuals or entities.

Property Description: Provide a detailed description of the property being reconveyed, including its legal description, address, and any pertinent information about its boundaries or improvements.

Debt Satisfaction: Clearly state that all debts, including the principal loan amount and accrued interest, have been paid in full.

Release of Lien: Include language indicating that the trustee releases any liens, encumbrances, or claims on the property.

Recording: Ensure that the document is properly executed, notarized, and recorded in the appropriate government office to provide notice of the reconveyance to interested parties.

Common Mistakes to Avoid:

Ambiguity: Use clear and precise language to prevent misunderstandings or disputes.

Failure to Consult Legal Counsel: Seek legal advice to ensure the document complies with local laws and effectively transfers ownership.

Inadequate Property Description: Ensure the property is accurately and comprehensively described to avoid future disputes.

Timing: File the reconveyance promptly after the debt is paid to avoid any delays or complications.

Failure to Notify Interested Parties: Notify all interested parties, including creditors and relevant government authorities, about the reconveyance to prevent potential challenges.

Omission of Necessary Signatures and Witnesses: Ensure all necessary parties sign the document, and it is properly witnessed to make it legally binding.

Drafting a Reconveyance by Trustee is essential for transferring clear title to the property owner after the debt is fully satisfied. Consulting with legal professionals experienced in real estate matters is advisable to ensure that the document is legally sound and properly executed, protecting the interests of all parties involved.

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