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Release Of Lien Texas Form

The Release of Lien Texas form is a legal document used to formally acknowledge that a lien on a property has been paid in full and is therefore released. This document is crucial for property owners who want to clear their title and ensure that no further claims can be made against their property. Understanding this form is essential for anyone involved in real estate transactions in Texas.

Edit Release Of Lien Texas Online

Edit Release Of Lien Texas Online

Outline

Common PDF Templates

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Release Of Lien Texas Sample

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.

	(Acknowledgment)
STATE OF TEXAS
COUNTY OF
This instrument was acknowledged before me on	,
by	.

	Notary Public, State of Texas
	Notary’s name (printed):
	Notary’s commission expires:
	(Corporate Acknowledgment)
STATE OF TEXAS
COUNTY OF
This instrument was acknowledged before me on	,
by	,
of
a		corporation, on behalf of said corporation.

	Notary Public, State of Texas
	Notary’s name (printed):
	Notary’s commission expires:

AFTER RECORDING RETURN TO:

PREPARED IN THE LAW OFFICE OF:

⇓ PDF File

Instructions on Utilizing Release Of Lien Texas

After completing the Release of Lien form, it is essential to ensure that all information is accurate. This form allows the holder of a lien to acknowledge that the debt has been paid and that the lien is released. Once filled out, the form should be signed in front of a notary public. Here are the steps to fill out the form correctly:

Enter the Date at the top of the form.
Fill in the Holder of Note and Lien section with the name of the person or entity holding the lien.
Provide the Holder’s Mailing Address, including the county.
Write the Note Date, which is the date the original loan was made.
Input the Original principal amount of the loan.
Fill in the Borrower section with the name of the person or entity that borrowed the money.
Complete the Lender section with the name of the lender.
If applicable, enter the Maturity date of the loan.
Describe the Note and Lien by referencing the documents that are recorded.
Detail the Property that is being released from the lien, including any improvements.
Sign the form in the designated area to acknowledge payment in full of the note.
Leave space for the Notary Public to sign and date the acknowledgment.
If applicable, complete the Corporate Acknowledgment section for corporate signers.
Finally, write the name of the law office in the AFTER RECORDING RETURN TO section.

Misconceptions

Understanding the Release of Lien form in Texas is crucial for both lenders and borrowers. However, several misconceptions can lead to confusion. Here are seven common misunderstandings:

Only lawyers can use the form. Many believe that only licensed attorneys can prepare or file a Release of Lien. In reality, while it is advisable to consult a lawyer for complex situations, individuals can fill out and submit the form themselves.
The form automatically cancels the debt. Some think that completing the Release of Lien means the debt is forgiven. This is not true; the release pertains only to the lien on the property, not the underlying obligation to repay the debt.
All liens are released with one form. Many assume that a single Release of Lien will eliminate all liens on a property. Each lien must be addressed individually; one form cannot cover multiple liens.
Filing the form is optional. Some believe that it’s not necessary to file a Release of Lien once the debt is paid. However, filing the form is essential to formally notify the public and clear the title to the property.
The form is only for real estate transactions. While commonly associated with real estate, the Release of Lien can apply to various types of secured loans. It’s important to understand its broader applications.
Once filed, the lien can never be reinstated. Many think that filing a Release of Lien permanently eliminates the lien. However, if the underlying debt is not truly satisfied, it may be possible for the lender to re-establish the lien under certain circumstances.
The form must be notarized in person. Some people believe that the acknowledgment must occur face-to-face with a notary. In Texas, remote online notarization is also an option, making the process more accessible.

By addressing these misconceptions, individuals can better navigate the complexities of the Release of Lien process in Texas.

Documents used along the form

When dealing with the Release of Lien in Texas, several other forms and documents often accompany it to ensure clarity and legal compliance. These documents help establish the context of the lien, confirm payment, and provide necessary acknowledgments. Here are some common forms that may be used alongside the Release of Lien:

Promissory Note: This document outlines the borrower's promise to repay a loan, including the terms of repayment, interest rates, and any penalties for late payment. It serves as evidence of the debt.
Deed of Trust: A deed of trust secures a loan by placing a lien on the property. It involves three parties: the borrower, the lender, and a trustee who holds the legal title until the debt is paid off.
Affidavit of Payment: This affidavit confirms that the borrower has paid off the debt associated with the lien. It can serve as additional proof when filing the Release of Lien.
Notice of Default: If payments are missed, this document formally notifies the borrower of their default status. It can be crucial in the process leading up to a foreclosure or lien enforcement.
Certificate of Satisfaction: This certificate is issued by the lender to confirm that the debt has been satisfied. It acts as a formal acknowledgment that the lien is no longer valid.
Hold Harmless Agreement: This essential document safeguards parties from liability for potential risks during activities. For further details, visit https://nypdfforms.com/hold-harmless-agreement-form.
Title Insurance Policy: This policy protects the lender and buyer against any potential disputes over property ownership. It ensures that the property is free of undisclosed liens or claims.

Using these documents in conjunction with the Release of Lien can help streamline the process and provide additional protection for all parties involved. Proper documentation is essential for maintaining clear property titles and ensuring that all financial obligations are met.