A lien release is a document revoking a lien on a property. Liens are filed to secure a debt, but a release can be issued when the debt is paid. A release may also be needed if a property is bought with existing liens. Sometimes a release is not required, but in some cases, a court may need to be involved to remove a lien.
A lien release is a document signed and filed by a court official stating that a lien has been revoked. In most cases, a lien is a note stating that a debt is owed that the borrower has interests in a property until that debt is paid. Release titles can also be issued to those who are not in debt if they own property with liens against it from a previous owner.
Liens are documents filed with the court to provide security against a debt. For example, if someone takes out a mortgage, the borrower or the bank may have a lien on the home being purchased. This ensures that if the money is not returned as per the agreed terms, the bank can take possession of the house. A release would be signed by the bank at the time the loan was paid and would state that they no longer had any rights to the property.
Sometimes a lien release is required by someone who did not have the debt for which the lien was placed. For example, if a lien has been withheld on a home and the original owner loses the home due to tax defaults, someone else can buy the home with the liens still in effect. These would need to be removed before the home can be sold again. To do this, the new owner would likely need to see a real estate attorney who would appeal to a judge for a lien release.
In some cases, a release may not be required. A lien on a home purchase, for example, could be sold ten years after the most recent lien was placed. This is because judgments and liens eventually expire if the person owed the debt does not come forward to claim ownership for him over a property.
Sometimes, even if the property owner isn’t technically in debt, a lien release may not be granted. If this occurs, the owner may have to go to court to try to force the parties who placed the lien to remove it. This could end up in one of two ways. First, the lien can be revoked and the property vacated. Secondly, the owner of the property may be obliged to pay part of the previous owner’s debt in order for the pledge to be liquidated.
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