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Fill Your Release Of Lien Texas Form

The Release of Lien Texas form is a legal document used to officially release a lien on a property once the associated debt has been paid in full. This form serves as a confirmation that the holder of the lien acknowledges the payment and relinquishes any rights to enforce the lien in the future. Completing this form is essential for property owners to clear their titles and ensure that no further claims exist on their property.

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Dos and Don'ts

When filling out the Release of Lien Texas form, there are some important things to keep in mind. Here’s a list of what you should and shouldn’t do:

  • Do ensure all information is accurate and complete.
  • Do double-check the names of the parties involved.
  • Do include the correct property description.
  • Do have the document notarized by a licensed notary public.
  • Don't leave any sections blank; fill in all required fields.
  • Don't forget to sign the document before notarization.
  • Don't use outdated versions of the form; always use the latest one.
  • Don't assume that a verbal agreement is sufficient; written documentation is essential.

Sample - Release Of Lien Texas Form

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:

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Documents used along the form

When dealing with a Release of Lien in Texas, several other documents may be necessary to ensure a smooth transaction. Each of these forms plays a vital role in the process of releasing a lien and confirming the status of the property. Below are some commonly used forms alongside the Release of Lien.

  • Deed of Trust: This document secures a loan by transferring the property title to a trustee until the borrower repays the debt. It outlines the rights of the lender and the borrower regarding the property.
  • Promissory Note: This is a written promise to pay a specified amount of money at a designated time. It details the terms of the loan, including interest rates and payment schedules.
  • Notice of Default: If a borrower fails to make payments, this document is issued to inform them of their default status. It outlines the steps needed to remedy the situation and avoid foreclosure.
  • Affidavit of Payment: This affidavit confirms that the borrower has paid off the debt associated with the lien. It serves as proof that the lender no longer has a claim on the property.
  • Title Search Report: This report provides a comprehensive review of the property's title history. It identifies any existing liens or claims against the property, ensuring that the release is valid.

Each of these documents serves a specific purpose in the lien release process. Having them prepared and properly executed can help avoid complications and ensure that all parties are protected. Always consult with a legal professional to ensure compliance with Texas laws and regulations.

Common mistakes

Completing the Release of Lien form in Texas can be straightforward, but several common mistakes can lead to complications. One frequent error is failing to provide accurate information in the fields for the Holder of Note and Lien. This includes the holder’s mailing address, which must be complete and include the county. Inaccurate or incomplete details can delay the processing of the release.

Another common mistake involves neglecting to specify the Note Date and the Original Principal Amount. These details are essential for identifying the specific lien being released. Omitting this information can create confusion and potentially invalidate the release.

Many individuals also overlook the importance of including the Property description. The form requires a detailed description of the property, including any improvements. A vague or incomplete description can lead to disputes over which property the lien is being released from.

Additionally, the acknowledgment section is often filled out incorrectly. The notary's information must be complete and accurate, including the date of acknowledgment and the notary's printed name. Errors in this section can render the document unenforceable.

Another mistake is failing to sign the form. Both the holder of the note and the notary must sign the document. If either signature is missing, the release may not be valid.

People frequently forget to check if the Maturity Date is optional but still relevant. If the maturity date is included, it should be accurate. This oversight can lead to confusion regarding the status of the loan.

In some cases, individuals may not fully understand the implications of waiving future rights to enforce the lien. This clause should be read carefully, as it relinquishes any claim to the property for future debts.

Another mistake involves not keeping a copy of the completed form for personal records. It is crucial to retain a copy for future reference, especially if any disputes arise regarding the lien.

Lastly, individuals may fail to return the completed form to the correct address after recording. Ensuring that the document is sent to the appropriate law office is essential for proper processing and record-keeping.

Misconceptions

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

  • Only lawyers can use the form. While the form is prepared by the State Bar of Texas for lawyers, individuals can also use it if they understand the process and requirements.
  • A Release of Lien cancels the debt. The form only releases the lien on the property; it does not eliminate the underlying debt. Borrowers still owe the money unless otherwise agreed.
  • All liens are automatically released upon payment. A lien is not automatically released just because a payment is made. The holder must complete and file the Release of Lien form to officially remove the lien.
  • The form is only for real estate transactions. While it is commonly used for real estate, it can also apply to other types of property secured by a lien.
  • Once the form is filed, it cannot be contested. If there are disputes regarding the payment or validity of the lien, parties may still contest the release in court.
  • Notarization is optional. Notarization is a crucial step in the process. The form must be acknowledged by a notary public to be valid.
  • The Release of Lien is a one-size-fits-all document. Each situation is unique. It's important to tailor the form to reflect the specific details of the transaction and parties involved.

Clearing up these misconceptions can help ensure a smoother process when dealing with liens in Texas.

Key takeaways

Filling out and using the Release of Lien Texas form is a critical process for ensuring that a lien is properly released. Here are some key takeaways to keep in mind:

  1. Understand the Purpose: The Release of Lien form is used to officially acknowledge that a debt secured by a lien has been paid in full.
  2. Identify the Parties: Clearly list the holder of the note and lien, as well as the borrower and lender, to avoid confusion.
  3. Provide Accurate Details: Include the date of the note, the original principal amount, and the maturity date if applicable.
  4. Document Description: Make sure to describe the property involved, including any improvements, to ensure clarity.
  5. Full Payment Acknowledgment: The holder must acknowledge that the note has been paid in full before releasing the lien.
  6. Waiver of Future Claims: The holder waives any future rights to enforce the lien for any other debts once the lien is released.
  7. Notarization Required: The form must be acknowledged before a notary public to validate the release.
  8. Record the Release: After completing the form, it should be recorded in the appropriate county office to ensure public notice.
  9. Return Instructions: Include clear instructions on where to return the form after recording.
  10. Legal Assistance: Consider consulting with a legal professional if you have any uncertainties about the process.

By keeping these points in mind, you can navigate the process of filling out and using the Release of Lien Texas form with confidence and clarity.

File Characteristics

Fact Name Description
Purpose The Release of Lien Texas form is used to officially release a lien on a property, indicating that the debt secured by the lien has been paid in full.
Governing Law This form is governed by Texas property law, specifically the Texas Property Code, which outlines the requirements for liens and their release.
Prepared By The form is prepared by the State Bar of Texas, intended specifically for use by licensed attorneys in the state.
Key Parties It identifies key parties involved, including the holder of the note and lien, the borrower, and the lender.
Documentation The form requires details about the documents that describe the note and lien, which must be recorded in public records.
Acknowledgment Requirement The form includes an acknowledgment section that must be signed by a notary public to verify the identities of the parties involved.
Future Rights Waiver The holder of the note and lien waives any future rights to enforce the lien for other debts, ensuring that the lien is fully released.

How to Use Release Of Lien Texas

After completing the Release of Lien form, the next step involves ensuring that it is properly signed and notarized. This document must then be filed with the appropriate county office to officially release the lien. Follow these steps to fill out the form accurately.

  1. Date: Write the current date at the top of the form.
  2. Holder of Note and Lien: Enter the name of the individual or entity that holds the lien.
  3. Holder’s Mailing Address: Provide the complete mailing address, including the county.
  4. Note Date: Fill in the date when the original note was signed.
  5. Original Principal Amount: Indicate the original amount of the loan or note.
  6. Borrower: Write the name of the borrower who took out the loan.
  7. Lender: Enter the name of the lender who provided the loan.
  8. Maturity Date (optional): If applicable, include the date when the loan is due to be paid in full.
  9. Note and Lien Are Described in the Following Documents, Recorded in: Specify the documents that describe the note and lien, along with where they are recorded.
  10. Property: Describe the property that the lien is attached to, including any improvements.
  11. Holder of Note and Lien Acknowledgment: Confirm that the holder acknowledges payment in full and releases the property from the lien.
  12. Acknowledgment Section: Leave space for the notary public to sign and date the acknowledgment. Include the state and county.
  13. Notary Public Information: Provide the printed name of the notary public and the expiration date of their commission.
  14. Corporate Acknowledgment (if applicable): If a corporation is involved, fill out this section with the appropriate details.
  15. After Recording Return To: Include the name and address of the law office that prepared the document.