What is a Release of Lien?

A Release of Lien is a legal document that states a lienholder (the person or entity that holds the lien) no longer has a claim to the property that the loan was taken out against. This document is also known as a Discharge of Lien or Cancellation of Lien. When a lien is placed against a property it is done to secure the payment of a debt. The lien prevents the owner from selling the property until the debt is paid off or the lien is removed. A Release of Lien is used when the debt is fully satisfied, and the lienholder no longer has a claim against the property. In the State of California, a Release of Lien is typically filed with a county recorder’s office near the owner’s property. It must include the date of the loan, the amount of the loan, a legal description of the property, the name of the lienholder, and the name of the borrower. The document must also be signed by the lienholder or their representative in order to be valid. Once the Release of Lien is filed, the lienholder is released from any claim to the property and the owner is free to do what they wish with the property. The Release of Lien also serves as proof that the debt was satisfied and the lien has been removed. This is important for buyers when purchasing a property to ensure the title is clear.

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What is a Release of Lien?

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