Legal Question in Real Estate Law in Arkansas

Reconveyance of Deeds of Trust

I need to know, with the passage of Act 1945 amending 18-40-104, when releasing a Deed of Trust, are we now REQUIRED to request the trustee prepare the reconveyance? We have been using a Full Deed of Release executed by the lienholder and would love to continue this practice if possible.

If the trustee must be the one to reconvey, can the lienholder be appointed as the successor trustee (assuming they qualify under 18-50-102)? I can not see anything in 18-50-102 that would prevent the lender from also being the trustee... am I missing something, or is there another statute I should be looking at?

Any input would be greatly appreciated; I have tried to ask a couple of probate offices (counties) but they will not provide legal advice.


Asked on 7/08/05, 1:47 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Reconveyance of Deeds of Trust

I can't tell you a thing about Arkansas law, but to take your request literally, that ANY advice would be helpful, I'd say that in California the beneficiary can lawfully also be the trustee or successor trustee, but that it's generally considered poor practice because of the potential for conflicts of interest in being in both roles. The rights and duties can clash when something starts to go wrong, especially in a foreclosure setting.

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Answered on 7/08/05, 4:40 pm


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