Deed of Reconveyance explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
When a mortgage debt is paid in full, the security must be released. Where the mortgage took the form of a transfer to the lender, such as an English mortgage or a mortgage by conditional sale, the property has to be re-transferred to the borrower. The document that does this is a deed of reconveyance, also called a deed of redemption. This article provides a specimen and explains the borrower's right to call for it.
The mortgagee acknowledges that all principal money and interest secured by the mortgage deed have been paid and reconveys the mortgaged property to the mortgagor, discharged from all claims under the mortgage. Section 60 of the Transfer of Property Act, 1882 gives the mortgagor, on payment or tender at a proper time and place, the right to require delivery of the mortgage deed and documents, delivery of possession if the mortgagee holds it, and, at the mortgagor's cost, a re-transfer or a written acknowledgment that the mortgagee's rights are extinguished. A reconveyance of immovable property is an instrument that should be stamped and registered.
When you need a deed of reconveyance
You need one when:
- an English mortgage or a mortgage by conditional sale has been repaid and the title that stands in the lender's name has to go back to the borrower;
- a usufructuary mortgagee has recovered the debt from the income and must hand back possession and the property;
- the borrower wants the lender's rights in the property cleared before selling, refinancing or developing it.
A mortgage by deposit of title deeds is ended by returning the documents and recording a release. A simple mortgage is ordinarily ended by a registered release or acknowledgment. The deed of reconveyance fits where the lender holds the title.
If you are the borrower and the lender is slow to release, or the lender and borrower disagree about the amount due, our loan documentation support team can prepare the redemption papers and the tender letters. For the other mortgage forms, see the deed of mortgage by conditional sale and the English mortgage deed.
Specimen deed
DEED OF RECONVEYANCE This Deed of Reconveyance is made on at BETWEEN , (the Mortgagee) AND , (the Mortgagor). RECITALS A. By a mortgage deed dated , registered as at , the Mortgagor mortgaged the property described in the Schedule (the Property) to the Mortgagee to secure payment of with interest at per annum (the Mortgage Deed). B. The Mortgagor has paid to the Mortgagee all the principal money and interest secured by the Mortgage Deed, together with all costs and other sums due under it, and the Mortgagee acknowledges receipt of them in full. NOW THIS DEED OF RECONVEYANCE WITNESSETH: 1. Acknowledgment of payment. The Mortgagee acknowledges that it has received from the Mortgagor the full amount of , being all sums due under the Mortgage Deed, and that nothing remains due to it under the Mortgage Deed. 2. Reconveyance. In consideration of the payment, the Mortgagee reconveys and re-transfers to the Mortgagor the Property, with all buildings, fixtures, easements and appurtenances, to hold as absolute owner, discharged from all principal money and interest secured by the Mortgage Deed and from all claims and demands under it. 3. Possession. 4. Documents. The Mortgagee has returned to the Mortgagor the original Mortgage Deed and all documents of title and other documents relating to the Property that were in its possession, as listed in Annexure A. 5. No subsisting claim. The Mortgagee declares that it has not transferred, charged or otherwise dealt with the Property or its rights under the Mortgage Deed to any other person, and that it has no claim against the Property. 6. Further assurance. The Mortgagee shall, at the Mortgagor's cost, do all things reasonably needed to give full effect to this deed, including any filing needed to record satisfaction of the charge. 7. Costs. Stamp duty, registration charges and related expenses shall be borne by . IN WITNESS WHEREOF the parties have signed this deed on the date first written above. Signed by the Mortgagee: Signed by the Mortgagor: Witnesses: 1. 2. SCHEDULE: DESCRIPTION OF THE PROPERTY ANNEXURE A: LIST OF DOCUMENTS RETURNED
Clause-by-clause explanation
| Clause | What it does | Drafting tip |
|---|---|---|
| Recital A | Identifies the mortgage deed, its date and registration | Quote the registration particulars exactly |
| Recital B | Records full payment | State the amount and the date of payment |
| 1 Acknowledgment | The lender confirms nothing is due | Attach the payment proof or the lender's no-dues certificate |
| 2 Reconveyance | The operative transfer back | Use words of transfer and release, and name the property |
| 3 Possession | Records who is in possession | Choose the correct alternative |
| 4 Documents | Returns the deed and title papers | List them in an annexure and obtain a receipt |
| 5 No subsisting claim | Lender declares it has not dealt with the property | Prevents hidden third-party interests |
| 6 Further assurance | Covers filings and cooperation | Mention the record of satisfaction where a company is involved |
| 7 Costs | Allocates stamp and registration | Section 60 puts the cost of re-transfer on the mortgagor |
The law behind it
Section 60. At any time after the principal money has become due, the mortgagor has a right, on payment or tender at a proper time and place of the mortgage-money, to require the mortgagee (a) to deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property in the mortgagee's possession or power, (b) where the mortgagee is in possession, to deliver possession, and (c) at the cost of the mortgagor, either to re-transfer the property to the mortgagor or to a third person he directs, or to execute and, where the mortgage was effected by a registered instrument, to have registered an acknowledgment in writing that any right in derogation of the mortgagor's interest transferred to the mortgagee has been extinguished. The right is called a right to redeem. It continues unless extinguished by act of the parties or by a decree of a court. The mortgagee may, by a provision in the deed, be entitled to reasonable notice before payment or tender if the time for payment has passed or none was fixed. See the right of the mortgagor to redeem.
For the original mortgage forms, see how a mortgage is made, registration and attestation and the Schedule I entry covering reconveyance of a mortgage.
Company mortgagor. Where the mortgagor is a company, satisfaction of the charge must be reported to the Registrar of Companies as company law requires. Check the current form, fee and period under the Companies Act, 2013 and its rules.
Stamp duty, registration and execution
A reconveyance of immovable property is a chargeable instrument. The duty is fixed by the Stamp Act and Schedule of the State where the deed is executed; see the overview of stamp duty on legal documents. Because the deed re-transfers an interest in immovable property, it falls within the kind of document that section 17 of the Registration Act, 1908 requires to be registered where the value is one hundred rupees or more; see compulsory registration under section 17. Execution: the mortgagee signs after confirming receipt of the dues; the mortgagor signs; two witnesses attest; the deed is stamped and registered; original documents are returned against a signed receipt.
Common mistakes
- Releasing without recording full payment and the date.
- Failing to return the original mortgage deed and title documents.
- Not registering the deed, leaving the public record showing the mortgage.
- Quoting the original deed's date or registration number incorrectly.
- Leaving possession ambiguous.
- Forgetting to report satisfaction of a charge created by a company.
- Not noting a partial redemption where only part of the debt is paid.
- Signing without checking that the lender has not assigned its rights to another.
Need help closing out a mortgage?
A clean reconveyance gives the borrower a title that can be sold or financed again. Our loan documentation support service prepares the deed, the tender and the filings that record satisfaction.
Key takeaways
- A reconveyance returns the property to the mortgagor after full repayment.
- Section 60 gives the right to the documents, possession and a re-transfer or acknowledgment, at the mortgagor's cost.
- Record payment, list returned documents and register the deed.
- A company mortgagor must also report satisfaction of the charge; check the current form.
- Stamp duty is fixed by State law; no amount is given here.
Read next
- Usufructuary mortgage deed: format
- Memorandum of deposit of title deeds: format
- Section 60: right of mortgagor to redeem
- Mortgage deed: essential clauses and registration
Disclaimer: This specimen is a general model for information. Every document must be adapted to its facts and to the law, rules and forms in force when it is signed or filed; stamp duty, registration and court fees depend on the State and the forum. This article is general information, not legal advice; check the official text before acting.