What is a “release of lien"?

A "release of lien" refers to a document that removes a lien from a property. When a lien is placed on a property, it signifies that there is a claim or encumbrance on the property due to a debt or obligation that the property owner must satisfy. Once the underlying debt or obligation is fulfilled, the lienholder issues a release of lien to formally acknowledge that the claim on the property no longer exists. This is a crucial step in ensuring clear ownership and title of the property, allowing the owner to transfer or sell the property without the encumbrance of that lien.