What is a Release of Lien?

A Release of Lien is a legal document that is used in residential real estate law in South Dakota to remove a lien from a property. A lien is essentially when a financial party has a claim against a property. For example, if a borrower has taken out a loan that is secured by the property, the lender has a lien on the property. In order for the lien to be removed, the lienholder must provide a written document that acknowledges the debt has been repaid in full and releases the lien, which is called a Release of Lien. The Release of Lien gives evidence that the debt has been satisfied and that the lienholder has no future claim to the property. In order to be valid, the Release of Lien must include the full names and addresses of both the lienholder and the property owner, the date the document was signed, and a statement that the lienholder has no further claim against the property. The Release of Lien must be signed by both the lienholder and the property owner in the presence of a notary public or two witnesses. This document is an important part of the residential real estate law in South Dakota and ensures that the lienholder has released all claims against the property.

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What is a Release of Lien?

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