What typically needs to occur before a lien is released?

For a lien to be released, it is essential that the debt associated with the lien is fully paid off. A lien is a legal claim against a property that serves as security for the debt owed. When the borrower fulfills their obligation by paying off the debt, the creditor must then take steps to formally release the lien, thereby removing the claim from the property.

In this scenario, merely selling the property, taking out a new loan, or renovating the property does not necessarily result in the lien being released. Selling the property or taking out a new loan could transfer or change the financial obligations but would not eliminate the original lien unless the debt is settled first. Renovations do not have any effect on the status of the lien either. Therefore, the correct course of action before a lien is released is to ensure the debt tied to that lien has been satisfied.