What is a Release of Lien?

A Release of Lien is a legal document that releases a lien on a piece of property in the District of Columbia. A lien is a claim against a piece of property, generally for an amount of money owed. The lienholder, or the person who holds the debt, can put a lien on the property in order to guarantee payment of the debt. A Release of Lien shows that the debt has been paid and therefore the lien is no longer valid. In District of Columbia, if there is a lien on a residential real estate property, the buyer must obtain a Release of Lien before the sale of the property can be completed. The seller needs to provide a Release of Lien from the lienholder before the transaction can be finalized. Without a Release of Lien, the buyer may be held liable for any unpaid debts associated with the property. When a Release of Lien is executed, both parties have to sign it. The seller must provide proof that the debt has been paid, and in some cases, they may be required to provide proof that they have taken out insurance on the property. Once the Release of Lien is signed, the lien on the property is gone. The owner of the property can then transfer title to the buyer without any worries of an unpaid debt being attached to the property.

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What is a Release of Lien?

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