Escrow & Title
What is a 'deed of reconveyance' and when is it used in Illinois?
AA deed conveying property back from buyer to seller after contract cancellation
BA document used in states with deeds of trust (not Illinois) to return title to the borrower upon full loan repayment; in Illinois, a satisfaction of mortgage is used instead✓ Correct
CA deed issued by a court reconveying property after adverse possession
DAn IDFPR form reconveying a license after suspension is lifted
Explanation
A deed of reconveyance is used in states that use deeds of trust (three-party security instruments) to reconvey title from the trustee back to the borrower when the loan is paid in full. Since Illinois primarily uses traditional two-party mortgages rather than deeds of trust, Illinois uses a satisfaction (or release) of mortgage instead. Understanding this terminology difference is important when working with lenders or clients from other states.
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