partial reconveyance - a provision in a mortgage or deed of trust that allows a parcel of land, or a portion of a parcel of land, to be freed from serving as collateral for the mortgage or trust deed prior to the full satisfaction of the mortgage or trust deed. An example is a $1,000,000 construction loan secured by the land and improvements of a small development of four houses. Although the loan is secured by the entire property, a partial reconveyance clause would allow the builder to sell the houses one at a time, pay the lender a prorated share of the loan for each sale made (usually more than $250,000 each for the first few houses sold to protect the security interest of the lender), and deliver clear titles to the buyers.

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