How To Have A Deed Of Trust Removed From A Title In Washington State
You borrow money to buy or refinance your home. Your lender takes a deed of trust on your home as collateral. Some time goes by and you pay off the loan or refinance it with a new lender who also takes a deed of trust on your home as collateral. More time goes by and then you discover that the deed of trust to the first lender still shows up against your property in the county real estate records. What do you do? How can you get the first deed of trust taken off the title to your property?
Usually, when the loan has been paid off, the beneficiary of the deed of trust makes a written request to the trustee of the deed of trust to reconvey the property “to the person entitled thereto.” The trustee records a reconveyance in the county real estate records and the lien of the deed of trust is removed from title to the property. Sometimes, that does not happen and the deed of trust stays in the county real estate records. One option for you, as “the person entitled thereto”, is for you to make the written request for reconveyance directly to the trustee of the deed of trust and provide proof that the loan has been paid in full. The state of Washington has provided you with another option effective July 28, 2013.
You can request the deed of trust beneficiary to request the trustee to reconvey the property. If the beneficiary fails to request reconveyance within 60 days from the date of your request and has received payment as specified in the beneficiary’s demand statement, the escrow agent who paid the demand in full from escrow can act as your agent and submit proof of satisfaction of the obligation and make the request to the trustee to reconvey the property. If the trustee is unwilling or unable to reconvey the property within 120 days following the payment to the beneficiary, a notarized declaration of payment can be recorded with the county auditor of the county where the property is located and a copy of that declaration must be sent by certified mail to the last known address of the beneficiary and the trustee within 2 business days after the declaration is recorded. The beneficiary or the trustee may record an objection to that declaration within 60 days after the declaration is recorded. If no objection is recorded within that time, any lien of the deed of trust against that property must cease to exist.
If you have legal questions about Deeds of Trust in Washington State, please contact the Real Estate lawyers at Beresford Booth. The attorneys of Edmonds Washington law firm Beresford Booth are available to serve your Business & Real Estate Law, Divorce & Family Law, Estate Planning & Probate Law as well as your Litigation needs.
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