ORS 86.720
Reconveyance upon performance

  • liability for failure to reconvey
  • release of trust deed

(1)

Within 30 days after performance of the obligation secured by the trust deed, the beneficiary shall deliver a written request to the trustee to reconvey the estate of real property described in the trust deed to the grantor. Within 30 days after the beneficiary delivers the written request to reconvey to the trustee, the trustee shall reconvey the estate of real property described in the trust deed to the grantor. In the event the obligation is performed and the beneficiary refuses to request reconveyance or the trustee refuses to reconvey the property, the beneficiary or trustee so refusing shall be liable as provided by ORS 86.140 (Liability of mortgagee for failure to discharge mortgage) in the case of refusal to execute a discharge or satisfaction of a mortgage on real property. The trustee may charge a reasonable fee for all services involved in the preparation, execution and recordation of any reconveyance executed pursuant to this section.

(2)

If a full reconveyance of a trust deed has not been executed and recorded pursuant to the provisions of subsection (1) of this section within 60 calendar days of the date the obligation secured by the trust deed was fully satisfied, then:

(a)

If the obligation was satisfied by a title insurance company or insurance producer or by payment through an escrow transacted by a title insurance company or insurance producer, upon the written request of the grantor or the grantor’s successor in interest, the tender of reasonable charges and the compliance with the notice requirements of subsection (3) of this section, the title insurance company or insurance producer shall prepare, execute and record a release of trust deed.

(b)

Upon compliance with the notice requirements of subsection (3) of this section, any title insurance company or insurance producer may prepare, execute and record a release of trust deed.

(3)

Prior to the issuance and recording of a release pursuant to this section, the title insurance company or insurance producer shall give notice of the intention to record a release of trust deed to the beneficiary of record and, if different, the party to whom the full satisfaction payment was made. The notice shall:

(a)

Provide that the parties to whom the notice is sent shall have a period of 30 days from the date of mailing to send to the title insurance company or insurance producer their written objections to the execution and recording of the release of trust deed;

(b)

Be sent by first class mail with postage prepaid, addressed to the named interested parties at their last-known addresses, including post office boxes; and

(c)

Identify the trust deed by the name of the original grantor and any successor in interest on whose behalf payment was made and by the recording reference.

(4)

The release of trust deed shall recite on the first page that it has been executed and recorded pursuant to the provisions of this section. The release shall be properly acknowledged and shall set forth:

(a)

The name of the beneficiary to whom the payment was made;

(b)

The name of the original grantor of the trust deed and any successor in interest on whose behalf payment was made;

(c)

The recording reference to the trust deed that is to be released;

(d)

A recital that the obligation secured by the trust deed has been paid in full;

(e)

The date and amount of payment;

(f)

The date of mailing of notice required by this section; and

(g)

A recital that no written objections were received by the title insurance company or insurance producer.

(5)

The release of trust deed executed pursuant to this section shall be entitled to recordation and, when recorded, shall be deemed to be the equivalent of a reconveyance of a trust deed.

(6)

The title insurance company or insurance producer shall not record or cause to be recorded a release of trust deed when any of the following circumstances exist:

(a)

The 30-day period following notice given under this section has not expired; or

(b)

Written objection to such recordation has been received by the title insurance company or insurance producer from any of the parties to whom notice was sent.

(7)

The trustee, title insurance company or insurance producer may charge a reasonable fee for all services involved in the preparation, execution, recordation and compliance with this section, to effect the release of trust deed.

(8)

Subsection (2) of this section does not excuse the beneficiary or trustee from compliance with subsection (1) of this section.

(9)

In addition to any other remedy provided by law, a title insurance company or insurance producer preparing, executing or recording a release of trust deed shall be liable to any party for damages that the party sustains by reason of the negligence or willful misconduct of the title insurance company or insurance producer in connection with the issuance, execution or recording of the release pursuant to this section. Except as provided in subsection (10) of this section, the court may award reasonable attorney fees to the prevailing party in an action under this section.

(10)

The court may not award attorney fees to a prevailing defendant under the provisions of subsection (9) of this section if the action under this section is maintained as a class action pursuant to ORCP 32.

(11)

As used in this section, “insurance producer” means an authorized issuer of title insurance policies of a title insurance company who is licensed as an insurance producer for that purpose pursuant to ORS chapter 744.

(12)

Subsections (2) to (11) of this section shall be applicable only to full reconveyances of the property described in the trust deed and not to reconveyances of parts or portions of the property.

(13)

Subsections (1) to (12) of this section are applicable to all trust deeds, whether executed before, on or after November 4, 1993.

(14)

A title insurance company or agent is not required to prepare, execute and record a release of trust deed under subsections (2) to (12) of this section if the obligation secured by the trust deed was satisfied prior to November 4, 1993. [1959 c.625 §18; 1993 c.648 §2; 1995 c.696 §15; 2001 c.254 §1; 2003 c.364 §49; 2017 c.251 §2]

Source: Section 86.720 — Reconveyance upon performance; liability for failure to reconvey; release of trust deed, https://www.­oregonlegislature.­gov/bills_laws/ors/ors086.­html.

Notes of Decisions

Provision of this section, stating that trustee shall reconvey upon written request of beneficiary, does not allow reconveyance upon presentment of note and trust deed by person with no ownership interest in note or beneficial interest in trust deed and no authority to act on behalf of person who has such interests. Lantz v. Safeco, 93 Or App 664, 763 P2d 744 (1988), Sup Ct review denied

86.010
Nature of mortgagee’s interest
86.020
Covenant to pay money not implied
86.030
Absolute deed as a mortgage
86.040
Improvements on mortgaged lands
86.050
Payment of taxes and other charges by mortgagee
86.060
Assignment of mortgage
86.080
Record of assignment not notice to mortgagor
86.095
Acts not affecting priority of lien of credit instrument
86.100
Discharge of mortgage
86.110
Discharge of record by owner and holder of mortgage note who is not the mortgagee of record
86.120
Discharge of mortgage on real property
86.130
Discharge by foreign executors, administrators, conservators and guardians
86.140
Liability of mortgagee for failure to discharge mortgage
86.150
Loan agreements and promissory notes to state maximum prepayment privilege penalty
86.155
Priority of line of credit instrument as to certain advances
86.157
Action for residual debt after short sale of residential property
86.160
Definitions for ORS 86.160 to 86.185
86.165
Late charge
86.170
Prohibited mortgage provisions
86.175
Scope
86.180
ORS 86.160 to 86.185 not applicable to certain mortgagees
86.185
ORS 86.160 to 86.185 not applicable to certain loans
86.205
Definitions for ORS 86.205 to 86.275
86.210
Types of lender security protection provisions allowed
86.214
Application of ORS 86.210 and 86.245 to real estate loan agreements
86.240
Limit on amount required in security protection escrow account
86.245
Interest on security protection deposits
86.250
Service charge prohibited where interest required
86.255
Arrangements where security protection provisions not required
86.260
Payment of taxes where security protection provision required
86.265
Effect of lender violation of ORS 86.205 to 86.275
86.270
ORS 86.205 to 86.275 inapplicable to certain loan agreements
86.275
Severability
86.405
Secretary of State to furnish statement of mortgages filed before September 1, 1963
86.440
Discharge of mortgage recorded with county recording officer
86.460
Discharge of mortgage filed with Secretary of State
86.470
Discharge, assignment and foreclosure of mortgages on chattels registered and licensed by Department of Transportation
86.610
Power of financial institutions, fiduciaries and others to make loans secured by property insured by Federal Housing Administration
86.620
Investment of funds of financial institutions, fiduciaries and others in bonds and mortgages accepted by Federal Housing Administration, debentures issued thereby, and obligations of national mortgage associations
86.630
Eligibility of securities described in ORS 86.620 as security for deposits, investment or reserve of securities
86.640
Applicability of other laws requiring security or regulating loans and investments
86.705
Definitions for ORS 86.705 to 86.815
86.707
Additional definitions for ORS 86.726, 86.729, 86.732, 86.736, 86.741, 86.744 and 86.748
86.710
Trust deeds authorized to secure performance of obligation
86.713
Qualifications of trustee
86.715
Trust deed deemed to be mortgage on real property
86.720
Reconveyance upon performance
86.722
Correction of error concerning status or effect of trust deed
86.726
Resolution conference for foreclosure
86.729
Scheduling and notice for resolution conference
86.732
Attendance at resolution conference
86.736
Certificate of compliance
86.741
Attorney General duties and powers
86.744
Foreclosure Avoidance Fund
86.748
Determination of ineligibility for foreclosure avoidance measure
86.752
Foreclosure by advertisement and sale
86.756
Notice to grantor
86.761
Failure to give notice to grantor
86.764
Notice of sale for certain persons
86.767
Failure to give notice of sale
86.771
Contents of notice of sale
86.774
Service and publication of notice
86.778
Discontinuance of foreclosure proceedings after cure of default
86.782
Sale of property
86.786
Request for information from trustee
86.789
Information provided by trustee
86.794
Disposition of proceeds of sale
86.797
Effect of sale
86.800
Contents of trustee’s deed to purchaser
86.803
Recitals in trustee’s deed and certain affidavits as prima facie or conclusive evidence
86.806
Requests for copies of notice of default or notice of sale
86.809
Compensation of trustee
86.812
Impermissible conditions for approving short sale or sale of note
86.815
Time within which foreclosure must be commenced
86.990
Penalties
Green check means up to date. Up to date