Quick Answer
A lien release is documentation showing a lienholder's claim has been satisfied, terminated, or released. Depending on the type of lien, the document may be called a release of lien, satisfaction of judgment, release of mortgage, deed of reconveyance, or discharge.
Obtaining and recording a lien release is a critical part of the post-closing process. Without a proper release, the public record will continue to show an unsatisfied lien, which can affect future transactions.
Paying a Debt and Clearing the Public Record Are Related but Not Identical
A common misconception is that paying off a loan automatically removes the lien from the public record. This is not how it works. Paying the debt and clearing the public record are separate steps:
- Pay the debt: The borrower pays the loan balance. The debt is satisfied.
- Get a release: The lienholder prepares and executes a release document.
- Record the release: The release must be recorded in the public records to provide notice that the lien is no longer in effect.
Example: A borrower pays off their mortgage in full. The balance is $0. But if the release is never recorded, the public record will still show the mortgage as an active lien. This is why what happens when a mortgage was paid but never released is an important topic.
WHAT SHOULD THE SELLER/BUYER DO?
Keep copies of all lien releases with your permanent property records. If you ever sell or refinance, you may need to prove that a prior lien was properly released. Digital copies are helpful, but recorded releases are the gold standard.
FAQs
How long does it take to get a lien release after payment?
It varies by lienholder. Some provide releases within days. Others can take weeks or months. The title company typically tracks outstanding releases and follows up.
What if I lost my lien release?
If the release was recorded, you can obtain a certified copy from the county recorder's office. If it was never recorded, you may need to request a new release from the original lienholder or explore alternative curative documentation. See what happens when an old lien was never released.
Can a lien release be recorded electronically?
Many counties now accept electronic recording of lien releases, which can speed up the process. However, each county has its own requirements and capabilities.