Author: Felecia Roberts

A reconveyance deed is commonly used to remove an encumbrance to “reconvey” a clear title to the property owner. The most common types of real property encumbrances are mortgages, property tax liens, and deed restrictions. When a mortgage is paid off, the encumbrance is removed from public records of the property.

In the case of a tax lien, a lien will remain on the property until the tax is paid. In some instances, the owner may be forced to sell the property to satisfy liens. A deed restriction places conditions on how a property may be used by a future owner. A good example is farmland preservation encumbrance where there is a stipulation that the land may never be used any other purposes.

A deed of trust is a legal instrument that serves as an agreement between a lender and a borrower to place a piece of property into the hands of a third party as a trustee. The third party holds the property until the borrower can pay it off, but the borrow retains all of the responsibilities for maintaining the property. The borrow also holds the title to the property during this time.

This arrangement means that the trustee must be prepared to sell the property in the event that the borrower does not meet their debt obligations on it. It is not a common arrangement, but it is one that may still be explored. It is the responsibility of the trustee to remain neutral in everything related to this property, and they must view what they do as favoring the borrower nor the lender in particular.

A comparable is the best way for a real estate owner to understand where the value of his or her real estate stands. The short hand way to understand a comparable is to understand it as a way to value real estate against other real estate in the area. A piece of property that is relatively in the same frame of value as another is a great way to get a ballpark idea of the value of a property.

It is always important to understand that a comparable should match up with your piece of property as closely as possible. Slight differences can make a big difference in one direction or another. Properties in the same neighborhood with nearly identical space and amenities are the best comparables out there.