Document background
A Lien Release Letter is a crucial document in South African secured transactions and property law, used when a creditor or lienholder wishes to formally relinquish their security interest in specific property. This document becomes necessary when a debt has been fully repaid, when refinancing occurs, or when there's a need to clear title to property. The letter must comply with South African legal requirements, including those set out in the Security by Means of Movable Property Act and the Deeds Registries Act when applicable. The Lien Release Letter should clearly identify the property being released, reference the original security interest, and include an unequivocal statement of release. In South Africa, these documents may need to be registered with the appropriate authorities, particularly for immovable property, and must be properly executed by authorized representatives of the releasing party.
