Definition
A lien release documents that a lien has been paid and releases the claim against your property. Lien releases clear title by removing recorded liens and are essential closing documents.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
When a debt is paid, the creditor issues a lien release (also called a 'satisfaction' or 'release of lien') that's recorded to remove the lien from title. Lien releases are essential closing documents that clear title defects. Sellers must obtain releases from all creditors at closing; the buyer's loan proceeds typically fund these payoffs. Some creditors issue releases electronically, while others require traditional recorded documents.
Pro Tip
Ensure all lien releases are recorded before closing. They won't clear title until officially recorded.
Example
At closing, a seller's existing mortgage is paid from sale proceeds and a lien release is recorded, removing the mortgage from title.