Legal Question in Real Estate Law in California

Return of trust deed with reconveyence signed off.

On March 13, 2001, I sent a check to pay off a trust deed carried by a private party. It is now June 17, 2001 and after phone calls and a letter requestin the return of our note signed paid and the reconveyence signed off on the trust deed, I have had no response of any kind. What can we do to force this person to return our papers with the required signatures ?


Asked on 6/17/01, 6:04 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Return of trust deed with reconveyence signed off.

First, remember that there are three parties in a trust deed financing -- the trustor or borrower (you); the beneficiary or lender (the person you repaid); and the trustee.

The beneficiary is supposed to notify the trustee when the borrower pays him off. Then it becomes the trustee's responsibility to execute the reconveyance.

This is spelled out in the Civil Code at sections 2941 - 2941.7. 2941 is the basic law. 2941.5 provides penalties for failure to reconvey. 2941.7 provides an alternate means to remove the lien if the beneficiary refuses to cooperate.

You can read these code provisions at a law library and cite them to the lender (beneficiary) and see if that gets things moving. If not, see a real estate lawyer in your county to have some demand letters sent on your behalf or the remedial steps specificed in the Code started.

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Answered on 6/28/01, 4:25 pm


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