What does "release of lien" mean?

The term "release of lien" refers specifically to a document that indicates a lien on a property has been removed once the obligations associated with that lien have been satisfied. When a lien is placed on a property, it serves as a claim against that property, often due to debts or obligations that the property owner has not fulfilled. Once these obligations are met, such as paying off a mortgage or settling a debt, the creditor will issue a release of lien, formally acknowledging that their claim has been lifted.

This process is essential for property owners as it clears the title of the property, allowing them to sell or refinance it without the burden of the lien. The release document is typically recorded in public records to ensure that it is officially recognized and can be referenced in any future transactions involving the property.

The other choices do not accurately capture the essence of what a release of lien entails. For instance, the creation of a new lien or property tax deductions do not pertain to the removal of an existing claim, and a notice of property sale is unrelated to the concept of obligations being fulfilled with respect to existing liens.