Legal Question in Real Estate Law in California

Re: Deed of Trust

When a loan is paid off, the collateral is released by a very standardized transaction called a "reconveyance" and the law requires the paid-off lender to reconvey within a rather short time frame but they may require the payment of a small fee. As to this aspect of the deal, if the trustee has not reconveyed to your parents, you should ask that it do so immediately.

Also, the note which the deed of trust secured should be returned from the lender to the borrower and the reconveyance of the deed of trust and the surrender of the paid note should for practical purposes release the cosigner as well.

You need to think in terms of extinguishing the note and deed of trust (as hinted at above) rather than "removing your name" from the deed of trust or the note it secures. There really isn't any practical way to "remove your name" from a legal document. Instead, think in terms of additional, new documents that show no obligation exists any more because the payment obligation has been satisfied. That's what a reconveyance accomplishes.

If one could remove herself from a deed of trust by filling out a form, deeds of trust wouldn't be worth the paper they're word-processed on. The closest there might be to a "form" for this would perhaps be entitled "demand for full reconveyance" and would probably be your parents' job to prepare and deliver to the trustee.

If this answer isn't helpful, feel free to conact me directly with more details, and I'll try to give you a further (free) answer.

Re: Deed of Trust

If the loan has been paid off, the Deed of Trust should have been reconveyed and is no longer a factor - meaning you do not have to be removed from the Deed of Trust as it is no longer effective. Now, do you mean you are on the actual deed as an owner of the property? That's a different question, and one that you should re-post with more facts.

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