What is the procedure for clearing an old, paid-off loan or lien from my property's title record with the county recorder in California?

To clear a paid-off loan from your property title, you must ensure the lender files a "Deed of Reconveyance" with the county recorder. If the lender fails to act, you can make a formal demand or use a statutory process to release the lien. Here are the steps to clear a paid-off loan or deed of trust from your property record: Step 1: Contact the Lender or Trustee First, contact the bank, lender, or trustee that issued the original loan. Request that they execute and record a Deed of Reconveyance. You will need your loan number and property address. Often, this resolves the issue, as the failure to record was an administrative oversight. Step 2: Send a Formal Written Demand If the lender is unresponsive, send a formal written demand letter via certified mail. In the letter, reference California Civil Code § 2941, state that the loan has been paid in full, and demand that they execute and record the Deed of Reconveyance. Keep a copy of the letter and the certified mail receipt. Step 3: Lender's Obligation Under California law, once a loan is fully paid, the lender has 30 days to deliver the original note and deed of trust to the trustee, who is then obligated to record a Deed of Reconveyance. Failure to comply can result in a $500 penalty payable to you, plus any actual damages. Step 4: Use the Statutory Release Procedure If the lender is out of business, cannot be located, or still refuses to act, you can use the process outlined in California Civil Code § 2941.7. This typically involves hiring a title insurance company to conduct a diligent search for the lender. If the lender cannot be found, the title company can help you prepare and record a "Release of Obligation" document, which serves the same function as a reconveyance. Step 5: Verify with the County Recorder After a Deed of Reconveyance or Release of Obligation is filed, check with your county recorder’s office to confirm it has been recorded against your property. You can usually do this online or by visiting the office. This confirms your title is clear of the old lien. Important considerations: This process applies to voluntary liens like mortgages or deeds of trust. For involuntary liens, such as a judgment lien, the creditor must file an "Acknowledgment of Satisfaction of Judgment" with the court and the county recorder. Warnings and limitations: The process under Civil Code § 2941.7 can be complex and may require the assistance of a title company or an attorney. You will be responsible for any recording fees charged by the county and service fees charged by a title company. This is general information and does not constitute legal advice. For complex situations, such as when a lender is defunct or uncooperative, you should consult with a qualified California real estate attorney.