Content Overview
When dealing with property transactions in Texas, understanding the Release of Lien form is essential for both borrowers and lenders. This document serves as a formal acknowledgment that a lien, which is a legal claim against a property, has been satisfied. It provides clarity and peace of mind by confirming that the holder of the lien has received full payment for the debt associated with the property. The form includes key details such as the names of the borrower and lender, the original principal amount of the note, and the specific property involved. Additionally, it stipulates that the holder of the lien waives any future rights to enforce the lien, ensuring that the property is free from further claims. This release is crucial for anyone looking to sell or refinance their property, as it clears the title and confirms that no outstanding debts remain tied to the property. Furthermore, the document must be notarized to validate the acknowledgment, ensuring that all parties involved have legally recognized the release. Understanding these aspects of the Release of Lien form can help streamline property transactions and prevent future disputes.
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Prepared by the State Bar of Texas for use by lawyers only.
E 1999 by the State Bar of Texas
RELEASE OF LIEN
Date:
Holder of Note and Lien:
Holder’s Mailing Address (including county):
Note
Date:
Original principal amount:
Borrower:
Lender:
Maturity date (optional):
Note and Lien Are Described in the Following Documents, Recorded in:
Property (including any improvements):
Holder of Note and Lien is the owner and holder of the Note and Lien described above.
Holder of Note and Lien acknowledges payment in full of the Note and releases the Property from the Lien and from all liens held by Holder of Note and Lien, without regard to how they were created or evidenced.
Holder of Note and Lien expressly waives and releases all present and future rights to establish or enforce the Lien as securi- ty for payment of any future or other indebtedness.
When the context requires, singular nouns and pronouns include the plural.
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(Acknowledgment) |
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STATE OF TEXAS |
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COUNTY OF |
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This instrument was acknowledged before me on |
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by |
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Notary Public, State of Texas |
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Notary’s name (printed): |
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Notary’s commission expires: |
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(Corporate Acknowledgment) |
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STATE OF TEXAS |
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COUNTY OF |
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This instrument was acknowledged before me on |
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by |
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of |
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corporation, on behalf of said corporation. |
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Notary Public, State of Texas |
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Notary’s name (printed): |
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Notary’s commission expires: |
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AFTER RECORDING RETURN TO: |
PREPARED IN THE LAW OFFICE OF: |
Form Specifications
| Fact Name | Fact Description |
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| Purpose | The Release of Lien form is used to formally acknowledge that a lien has been satisfied and to release the property from that lien. |
| Governing Law | This form is governed by Texas law, specifically the Texas Property Code. |
| Prepared By | The form is prepared by the State Bar of Texas and is intended for use by lawyers only. |
| Notary Requirement | A notary public must acknowledge the execution of the form to ensure its validity. |
| Information Required | The form requires details such as the holder of the note and lien, borrower, lender, and property description. |
| Payment Acknowledgment | The holder of the note and lien must acknowledge that payment has been made in full before releasing the lien. |
| Future Rights Waiver | The holder waives all rights to establish or enforce the lien for future indebtedness after the release. |
| Record Keeping | After execution, the form should be recorded in the appropriate county office to ensure public notice of the lien release. |
Release Of Lien Texas: Usage Guidelines
Filling out the Release of Lien form in Texas is a straightforward process. Make sure to have all necessary information on hand before you begin. Once completed, this form will need to be submitted to the appropriate county office for recording. Here are the steps to fill out the form:
- Date: Write the current date at the top of the form.
- Holder of Note and Lien: Enter the name of the individual or entity that holds the lien.
- Holder’s Mailing Address: Provide the complete mailing address of the holder, including the county.
- Note Date: Fill in the date when the original note was signed.
- Original Principal Amount: Write the original amount of the loan or note.
- Borrower: Enter the name of the borrower.
- Lender: Fill in the name of the lender.
- Maturity Date (optional): If applicable, include the date when the note matures.
- Note and Lien Are Described in the Following Documents, Recorded in: Specify the documents that describe the note and lien, along with the recording information.
- Property: Describe the property that is subject to the lien, including any improvements.
- Acknowledgment: Leave space for the notary public to acknowledge the document. Include the state and county where the acknowledgment will take place.
- Notary Public, State of Texas: The notary will fill in their name and the expiration date of their commission.
- Corporate Acknowledgment: If applicable, provide space for a corporate acknowledgment, including the name of the corporation and the notary’s details.
- After Recording Return To: Write the name of the law office or individual to whom the recorded document should be returned.
Your Questions, Answered
What is a Release of Lien Texas form?
The Release of Lien Texas form is a legal document used to formally remove a lien from a property. A lien is a legal claim against a property, typically used to secure payment for a debt. When the debt is paid in full, the lienholder uses this form to acknowledge that the lien is no longer valid, thus releasing the property from any claims associated with that lien.
Who can use the Release of Lien Texas form?
This form is generally intended for use by lienholders, such as lenders or creditors, who have been repaid for the debt secured by the lien. It is important to note that the form is prepared by the State Bar of Texas specifically for use by lawyers, ensuring that the document meets legal standards.
What information is required to complete the form?
To complete the Release of Lien Texas form, several key pieces of information must be provided. This includes the date of the release, the name and mailing address of the lienholder, the date of the original note, the original principal amount, details about the borrower and lender, and a description of the property involved. Additionally, the form requires acknowledgment by a notary public to validate the release.
What happens after the form is completed and signed?
Once the Release of Lien Texas form is completed, signed, and notarized, it should be recorded with the appropriate county office where the original lien was filed. Recording the document officially removes the lien from public records, providing clear proof that the debt has been satisfied and the property is free of claims related to that lien.
Can a lienholder still enforce a lien after filing the Release of Lien?
No, once the Release of Lien Texas form is filed, the lienholder waives all rights to enforce the lien for that specific debt. This means that they cannot later claim the lien as security for any future debts. It is a complete release of the lien and any associated rights.
Is legal assistance necessary to fill out the Release of Lien Texas form?
Common mistakes
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Incomplete Information: Failing to fill in all required fields can lead to delays. Ensure every section, such as the holder's name and property details, is complete.
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Incorrect Dates: Entering the wrong dates for the note or lien can cause confusion. Double-check the note date and maturity date for accuracy.
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Missing Signatures: Not obtaining the necessary signatures from all parties involved can invalidate the form. Make sure that all required individuals sign the document.
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Improper Notarization: Neglecting to have the form properly notarized can result in legal issues. Ensure that a notary public witnesses the signing and completes their section correctly.
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Incorrect Property Description: Failing to accurately describe the property can lead to complications. Verify that the property details match public records.
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Ignoring Acknowledgment Section: Omitting the acknowledgment section can render the document unenforceable. Ensure this part is filled out and signed appropriately.
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Not Keeping Copies: Failing to retain copies of the completed form can hinder future reference. Always keep a copy for your records after filing.
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Submitting to the Wrong Office: Sending the form to the incorrect office can delay processing. Confirm the appropriate office for submission based on local regulations.
Documents used along the form
When dealing with the Release of Lien in Texas, several other forms and documents may be necessary to ensure a smooth transaction. These documents help clarify the terms and conditions related to the lien and the property involved. Below is a list of commonly used forms that accompany the Release of Lien.
- Deed of Trust: This document secures a loan by transferring the title of the property to a trustee until the borrower repays the loan. It outlines the terms of the loan and the rights of both the lender and borrower.
- Promissory Note: A written promise to pay a specific amount of money at a certain time. This document details the terms of the loan, including interest rates and repayment schedules.
- Notice of Default: Issued when a borrower fails to meet the terms of the loan agreement. This document informs the borrower of their default and the potential consequences, including foreclosure.
- Affidavit of Payment: A sworn statement confirming that the borrower has paid off the loan in full. This document can serve as proof for the lien holder to release the lien.
- Title Insurance Policy: This policy protects the lender and borrower from any issues related to the title of the property. It ensures that the property is free from undisclosed liens or claims.
- Release of Judgment Lien: If there is a judgment lien against the property, this document formally releases that lien, ensuring that the property is free and clear of any claims related to the judgment.
These documents work together to provide clarity and protection for all parties involved in a real estate transaction. Understanding each form's purpose can help ensure that the process is handled correctly and efficiently.
Similar forms
- Release of Mortgage: Similar to the Release of Lien, a Release of Mortgage is a document that confirms the borrower has paid off their mortgage. It serves to remove the lender's claim on the property, ensuring that the borrower holds clear title.
- Release of Judgment Lien: This document is issued when a judgment creditor agrees to release a lien placed on a debtor's property. Like the Release of Lien, it signifies that the debt has been satisfied, allowing the debtor to regain full ownership rights.
- Deed of Reconveyance: A Deed of Reconveyance is used in the context of a trust deed. Once the borrower pays off the loan, this document transfers the property back to them, similar to how the Release of Lien frees the property from a lien.
- Subordination Agreement: This document allows a new lien to take priority over an existing one. While it does not release a lien, it alters the priority of liens on the property, akin to how a Release of Lien removes the claim entirely.
- Partial Release of Lien: Unlike a full Release of Lien, a Partial Release allows for the removal of a lien on a specific portion of the property. This document is similar in that it acknowledges satisfaction of part of the debt while retaining the lien on the remainder.
Dos and Don'ts
When filling out the Release Of Lien Texas form, it is essential to follow specific guidelines to ensure accuracy and compliance. Here are nine important dos and don'ts:
- Do provide the date clearly at the top of the form.
- Do include the full name and mailing address of the holder of the note and lien.
- Do accurately state the original principal amount of the note.
- Do specify the borrower and lender details correctly.
- Do ensure that the property description is complete, including any improvements.
- Don't leave any fields blank unless they are optional.
- Don't forget to sign and date the acknowledgment section in front of a notary public.
- Don't use abbreviations or shorthand in the property description.
- Don't submit the form without confirming all information is accurate and legible.
Misconceptions
Understanding the Release of Lien form in Texas is essential for both borrowers and lenders. However, several misconceptions can lead to confusion. Here’s a list of common misunderstandings:
- Only lawyers can use the Release of Lien form. Many believe that this form is exclusively for legal professionals. In reality, while it is prepared by the State Bar of Texas for use by lawyers, borrowers and lenders can also utilize it with proper understanding.
- Filing the form automatically cancels all debts. Some people think that submitting the Release of Lien means all obligations are erased. However, this form only releases the specific lien mentioned and does not eliminate any other debts that may exist.
- The form is only needed for mortgage liens. There is a misconception that the Release of Lien is only applicable to mortgages. In fact, it can apply to various types of liens, including mechanics' liens and other secured interests.
- Once a lien is released, it cannot be reinstated. Many individuals assume that a released lien is gone forever. However, if the underlying debt is not satisfied, a new lien can be placed on the property in the future.
- Notarization is optional. Some believe that notarizing the Release of Lien is not necessary. In Texas, notarization is a crucial step to validate the document and ensure its legal standing.
- The form must be filed in person. There is a common thought that the Release of Lien must be submitted in person at the county clerk's office. Many counties allow for electronic filing, making the process more convenient.
- All parties must sign the form. It is often believed that every party involved in the transaction must sign the Release of Lien. Typically, only the holder of the lien is required to sign, but it’s always good to check specific requirements.
- Once filed, the Release of Lien cannot be contested. Some think that once the form is filed, it is final and cannot be challenged. In certain circumstances, if there is evidence of fraud or error, it may be possible to contest the release.
Clearing up these misconceptions can help ensure a smoother process when dealing with liens in Texas. Always consider seeking guidance to navigate these matters effectively.
Key takeaways
Understanding the Release of Lien Texas form is essential for anyone involved in real estate transactions. Here are some key takeaways to consider:
- Purpose of the Form: The Release of Lien form is used to officially release a lien on a property once the associated debt has been paid in full.
- Who Can Use It: This form is typically prepared by lawyers, but it can be used by anyone who holds a lien on a property.
- Information Required: Essential details include the holder of the note and lien, the borrower's name, the original principal amount, and the property description.
- Acknowledgment: The form requires acknowledgment by a notary public to verify the identity of the signer and the authenticity of the document.
- Waiver of Future Claims: By signing the form, the holder waives any future rights to enforce the lien for other debts.
- Recording the Document: After completion, the form must be recorded in the appropriate county office to be legally effective.
- Return Instructions: It is important to specify where the recorded document should be returned after processing.
- Legal Implications: Failing to properly complete or record the Release of Lien may result in continued liability for the lien holder.
These points highlight the importance of understanding and properly utilizing the Release of Lien Texas form in real estate transactions.