When the Trust Deed is signed as security for a loan, the purchaser of real property is handing bare legal title of that property over to a neutral third party called a trustee.
What if that trustee dies, or the trustee is a company that goes out of business, or something? The beneficiary (lender) on the Trust Deed will then file a Substitution of Trustee to publically declare that someone else now carries bare legal title on the property.
Whoever the trustee is, they have the power to foreclose and reconvey. If the borrower defaults on their debt, the beneficiary instructs the trustee to foreclose. However, if the borrower pays off their debt in full, then the beneficiary instruction the trustee to record a Reconveyance which transfers the bare legal title to the borrower.
In the situation where "Substitution of Trustee and Full Reconveyance" is one document, the beneficiary is simply assigning a new trustee responsible for reconveying legal title to the borrower since the loan was satisfied.
The note could have been paid off because the term on the loan was up, or perhaps the borrower refinanced to pay off an old loan in favor of a new one (in which case a new Trust Deed would be recorded).
When the Trust Deed is signed as security for a loan, the purchaser of real property is handing bare legal title of that property over to a neutral third party called a trustee.
What if that trustee dies, or the trustee is a company that goes out of business, or something? The beneficiary (lender) on the Trust Deed will then file a Substitution of Trustee to publically declare that someone else now carries bare legal title on the property.
Whoever the trustee is, they have the power to foreclose and reconvey. If the borrower defaults on their debt, the beneficiary instructs the trustee to foreclose. However, if the borrower pays off their debt in full, then the beneficiary instruction the trustee to record a Reconveyance which transfers the bare legal title to the borrower.
In the situation where "Substitution of Trustee and Full Reconveyance" is one document, the beneficiary is simply assigning a new trustee responsible for reconveying legal title to the borrower since the loan was satisfied.
The note could have been paid off because the term on the loan was up, or perhaps the borrower refinanced to pay off an old loan in favor of a new one (in which case a new Trust Deed would be recorded).
Hope that helps.