What is a Release of Lien?

A Release of Lien is indeed a statement issued when a mortgage is paid off. This document serves as formal confirmation that the lender has relinquished their claim against the property as a result of the mortgage being fully satisfied. The lien is a legal right or interest that a lender has in the borrower's property, granted until the debt obligation is fulfilled.

Once the borrower pays off the mortgage, the lender must provide a Release of Lien to indicate that they no longer have a financial interest in the property. This is crucial for the borrower as it clears the property title of the lien, allowing them to transfer ownership freely or refinance without complications.

This document is recorded with the county or appropriate government entity to formally indicate that the lien has been removed from the property record. This process ensures that future buyers or lenders can verify that there are no outstanding debts related to the property, thereby protecting their investment.