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.