What is a Release of Lien?

A Release of Lien is a legal document in residential real estate law in New York which releases a creditor’s lien on a piece of real estate. A lien is a legal claim on real estate that gives a creditor the right to keep a property until a debt is repaid. When a homeowner has paid off a mortgage loan, the lender usually issues a Release of Lien. This document is sent to the county clerk’s office as proof that the debt has been satisfied, and the lien is removed from the property. The homeowner can then provide evidence of the Release of Lien to potential buyers in order to prove that there is no outstanding debt on the property. It is important for homeowners to understand that a Release of Lien does not eliminate the debt altogether. It simply removes the lien and allows the homeowner to freely sell the property. The debt itself still has to be paid off, if necessary. In addition to a Release of Lien, a homeowner may also be required to provide a Certificate of Satisfaction, which is a document stating that all outstanding debts related to the property have been paid in full. This document is also submitted to the county clerk’s office to officially mark the debt as satisfied. It is critical for homeowners to understand the importance of a Release of Lien when it comes to selling a property in New York. They should always make sure to request this document and any other necessary documentation from their lender before beginning the sale process.

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What is a Release of Lien?

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