A release of lien is a legal document that removes the lender's security interest from your property after you have paid off your mortgage in full. It clears the deed of trust from the public records.
When you pay off your loan, the lender sends the release to the county clerk where it is recorded against the property. Once recorded, your title is clear of that lien and you own the property free and clear of that mortgage.
It is important to confirm with both the lender and the title company that the release has been properly recorded. Without it, a future buyer or refinance may run into title issues.
What a Release of Lien Is
A release of lien is also called a satisfaction of mortgage or deed of trust release. It is a recorded document that acknowledges the debt has been paid in full and the lender no longer holds a security interest in the property. The release must be in a format acceptable to the county clerk for recording.
When the Release Happens
The release is issued when you make your final payment, whether at the end of the loan term, through a payoff during a sale, or through a refinance. The lender typically has 30 to 60 days to prepare and record the release after receiving payoff funds.
How to Get a Release
If you paid off your loan, the lender should automatically send the release. If you have not received it within 60 days, contact the lender's payoff department. Request a copy of the recorded release. Some lenders charge a small fee for preparing the release document.
Recording the Release
The release must be recorded with the county clerk in the county where the property is located. The recording makes the release part of the public record. Future title searches will show the lien is satisfied. The county charges a recording fee, which is typically paid by the lender or included in your payoff statement.
Verifying the Release
Search the county clerk's online records to confirm the release is recorded. You can also check your credit report to confirm the mortgage account shows as paid. If you are selling or refinancing, the title company will verify the release as part of their title search.
Timeline for Receiving a Release
Most lenders issue the release within 30 days of payoff. Recording at the county takes another 1 to 4 weeks depending on the county. Total time from payoff to recorded release is typically 30 to 90 days. If you have not received confirmation by 90 days, follow up with the lender.