What is a Release of Lien?

A Release of Lien, in the context of residential real estate law in New Mexico, is a document that cancels a lien previously placed on a property. Liens are often placed on real estate to secure payments for taxes, debts, or other payments due. A release of lien effectively states that the underlying payment obligation has been met, or forgiven, and the lien is no longer in effect. Often, a lender or other creditor will require a Release of Lien to be signed and recorded in the Office of the County Clerk before they provide funds for a real estate transaction. In New Mexico, a Release of Lien must be filed with the Office of the County Clerk in the county where the property is located. The Release of Lien must include the names of both the lien’s claimant and the property owner, the legal description of the property, the amount of the lien, and a statement that the lien has been cancelled. Once the Release of Lien document is recorded, it becomes part of the public record, and anyone searching the title to the property can see that the lien has been released.

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What is a Release of Lien?

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