What is a Re-Conveyance Deed?

A Re-Conveyance Deed (also called Deed of Re-Conveyance) is a legal document executed by the lender (usually a bank or housing finance company) in favour of the borrower after full repayment of a mortgage or loan. It transfers all rights and interest in the property back to the borrower, removing the lien created during the mortgage process.

Key Terms:

• Mortgagor: The borrower (you)
• Mortgagee: The lender (bank or financial institution)
• Lien: A legal right or interest that a lender has on the property until the debt is paid

Why is a Re-Conveyance Deed Important?

Even after you’ve paid off your home loan, you’re not the complete legal owner of your property until the re-conveyance deed is executed and recorded.

Here’s why it matters:

1. Clear Title: It clears the lien and confirms your full ownership.
2. Smooth Future Sale: Essential if you want to sell or transfer your property.
3. Loan Eligibility: Required when applying for any further mortgage or loan on the property.
4. Legal Protection: Avoid future disputes regarding ownership or encumbrances.

When is a Re-Conveyance Deed Needed?

You need a re-conveyance deed when:

• You have repaid your entire home loan or mortgage.
• You want to sell, gift, or transfer the property.
• You are refinancing or restructuring an existing loan.

Procedure to Obtain a Re-Conveyance Deed in India

Step 1: Loan Repayment

Ensure that all outstanding dues, EMIs, prepayment charges (if any), and documentation are cleared with your lender.

Step 2: Request for NOC & Loan Closure Letter

Apply for:

• No Objection Certificate (NOC) from the bank
• Loan closure certificate
• Statement showing all repayments

Step 3: Application for Re-Conveyance

Submit a formal written request to your lender for executing a re-conveyance deed.

Step 4: Drafting the Re-Conveyance Deed

The lender’s legal team or your lawyer will draft the deed. It includes:

• Names of borrower and lender
• Property description
• Loan details and closure date
• Declaration of full repayment

Step 5: Stamp Duty Payment

Pay the applicable stamp duty and registration charges. These vary by state.

Step 6: Registration of the Deed

Register the re-conveyance deed at the local Sub-Registrar Office:

• Both parties (or authorized representatives) may need to be present.
• Carry original documents and ID proofs.

Step 7: Collect the Registered Document

After registration, collect your original documents:

• Title Deed
• Property papers
• Re-conveyance deed (now a public record of your ownership)

Documents Required for Re-Conveyance

• Original Sale Deed
• Loan closure letter
• NOC from lender
• Loan account statement
• Identity proof (Aadhaar, PAN)
• Address proof
• Copy of original mortgage deed
• Passport-sized photographs
• Power of attorney (if applicable)

Tips for a Smooth Re-Conveyance Process

• Keep copies of all communications with your lender.
• Do not delay the deed registration post-loan closure.
• Engage a property lawyer if the bank is unresponsive.
• Check for encumbrance certificate updates after deed registration.
• Verify that all original property documents are returned.