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Title Lien Release Letter for Canada

Title Lien Release Letter Template for Canada

A Title Lien Release Letter is a formal document used in Canadian jurisdictions to officially release a security interest or lien on a vehicle or other property. This document, governed by provincial personal property security legislation, provides written confirmation that a debt has been satisfied and authorizes the removal of the lien from official records. It includes specific details about the property, the original lien, and contains formal authorization from the lienholder to clear the title, making it a crucial document for property transfers and ownership records.

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Title Lien Release Letter

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What is a Title Lien Release Letter?

The Title Lien Release Letter serves as a critical document in Canadian secured transactions, particularly in situations where a borrower has fully satisfied their debt obligation and the lienholder needs to formally release their security interest. This document is essential for completing the discharge process under provincial personal property security legislation and ensuring clear title transfer. The letter typically includes specific property identification, lien details, and formal release language that complies with provincial registry requirements. A Title Lien Release Letter is commonly used in automotive financing but may also apply to other types of secured personal property. It represents the final step in the lending relationship and is crucial for maintaining accurate property records and enabling future transactions.

What sections should be included in a Title Lien Release Letter?

1. Letter Header: Contains date, sender's information, recipient's information, and reference numbers

2. Property Identification: Clear description of the property (usually vehicle) including make, model, year, and VIN number

3. Lien Information: Details of the original lien including date recorded, amount, and registration number

4. Release Statement: Formal statement declaring the full release of the lien and confirmation that the debt has been satisfied

5. Authorization: Statement of authority to release the lien and instruction to relevant authorities to remove the lien from records

6. Signature Block: Space for authorized signature, name, title, and any required notarization

What sections are optional to include in a Title Lien Release Letter?

1. Payment Confirmation: Include when there's a need to explicitly acknowledge receipt of final payment

2. Transfer Authorization: Include when the letter needs to explicitly authorize transfer of clear title to a specific party

3. Multiple Lien Statement: Include when there are multiple liens and only specific ones are being released

4. Conditional Release Language: Include when the release is contingent upon specific conditions being met

What schedules should be included in a Title Lien Release Letter?

1. Proof of Payment: Copy of payment receipt or transaction confirmation

2. Original Lien Documentation: Copy of the original lien registration or security agreement

3. Vehicle Registration: Copy of current vehicle registration or title certificate

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Release of Lien

Cost

Free to use
Relevant legal definitions
















Clauses












Relevant Industries

Automotive

Banking & Financial Services

Insurance

Legal Services

Transportation & Logistics

Consumer Finance

Asset Management

Relevant Teams

Legal

Finance

Credit Administration

Collections

Compliance

Documentation

Account Management

Vehicle Finance

Registry Services

Customer Service

Relevant Roles

Finance Manager

Credit Manager

Legal Counsel

Loan Officer

Collections Manager

Vehicle Finance Specialist

Compliance Officer

Documentation Specialist

Registry Officer

Account Manager

Auto Finance Manager

Title Clerk

Legal Administrative Assistant

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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