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Mortgage Payoff Lien Release for the United States

Mortgage Payoff Lien Release Template for United States

A Mortgage Payoff Lien Release is a legal document used in the United States to formally release a lender's security interest in a property after the mortgage has been fully paid off. This document must comply with both federal regulations and state-specific requirements for property transactions. Once executed, it is recorded in the county where the property is located, clearing the property's title of the mortgage lien.

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What is a Mortgage Payoff Lien Release?

The Mortgage Payoff Lien Release is a crucial document in U.S. real estate transactions that proves a mortgage has been satisfied and removes the lender's claim on the property. This document is required when a borrower has fully paid off their mortgage, whether through regular payments, refinancing, or sale of the property. It must be filed with the appropriate county recorder's office to clear the property's title. The document includes specific information about the original mortgage, property description, parties involved, and a formal statement of satisfaction. Proper execution and recording of this document is essential for maintaining clear property records and enabling future property transactions.

What sections should be included in a Mortgage Payoff Lien Release?

1. Document Title and Date: Clear identification of document type and execution date

2. Property Description: Legal description of the property including address and parcel number

3. Original Mortgage Information: Details of original mortgage including date, amount, and recording information

4. Lender Information: Full legal name and address of lending institution

5. Borrower Information: Full legal name(s) of borrower(s)

6. Release Statement: Formal statement releasing the lien and confirming full payment

7. Execution Block: Signature lines and notary section

What sections are optional to include in a Mortgage Payoff Lien Release?

1. Assignment Information: Details of any mortgage assignments, used when mortgage has been assigned to different lenders

2. Multiple Properties: Additional property descriptions if multiple properties were secured under the same mortgage

What schedules should be included in a Mortgage Payoff Lien Release?

1. Property Legal Description Exhibit: Detailed legal description if too lengthy for main document

2. Recording Information Schedule: Details of original mortgage recording and any assignments

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

United States

Publisher

Ƶ

Document Type

Release of Lien

Cost

Free to use
Relevant legal definitions


















Clauses














Industries

Truth in Lending Act (TILA): Federal law that requires clear disclosure of lending terms and protects consumers against inaccurate and unfair credit billing and credit card practices

Real Estate Settlement Procedures Act (RESPA): Federal law governing real estate settlement processes, including requirements for mortgage lien releases and settlement statements

Fair Credit Reporting Act (FCRA): Federal law ensuring accurate and fair credit reporting, particularly relevant when reporting the satisfaction of mortgage liens

UCC Article 9: Uniform Commercial Code provisions governing secured transactions, including the release of security interests

State Property Laws: State-specific legislation governing real property transactions and requirements for property transfers and lien releases

State Recording Acts: State laws determining the requirements and procedures for recording real estate documents, including lien releases

State Lien Release Requirements: State-specific regulations defining deadlines and procedures for releasing liens after mortgage payoff

State Notarization Requirements: State laws governing the proper notarization of real estate documents, including specific requirements for lien releases

Local Recording Requirements: County-specific rules and procedures for recording lien releases and other real estate documents

Local Filing Procedures: Specific procedures and requirements set by county recording offices for filing lien releases

Local Fee Schedules: County-specific fee structures for recording lien releases and related documents

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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