Legal Question in Real Estate Law in California

Re: Substitution of Trustee and Deed of Reconveyance

The trustee under a deed of trust holds title in trust as a form of collateral for the lender. When the loan is paid off and the note surrendered, the trustee is obligated to give back -- i.e., reconvey -- title to the former collateral to the borrower.

If the trustee fails to do so, the lender can remove the trustee, appoint himself/itself as a successor trustee, and make the reconveyance.

This remedy for failure of the trustee to perform in timely fashion is set forth in California Civil Code section 2941 -- specifically, at subsection 2941(b)(2).

The instrument or form for accomplishing this would be called a Substitution of Trustee and Deed of Reconveyance. Its effect is to restore full (or partial, if it's a partial reconveyance) title in the (former) borrower.

If you need further explanation or are involved in a dispute over a reconveyance, seek at least an initial free consultation with a real estate attorney.