Finance & Mortgages

Release of Lien (Satisfaction)

The document a lender records when a loan is fully paid, releasing the deed-of-trust lien from the property.

Quick flashcard

What does Release of Lien (Satisfaction) mean on the Texas real estate exam?

Answer: The document a lender records when a loan is fully paid, releasing the deed-of-trust lien from the property.

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Release of Lien (Satisfaction) definition

A release of lien, sometimes called a satisfaction, is the instrument a lender signs and records once the borrower has paid the loan in full. In Texas it releases the deed-of-trust lien from the public record and clears the title. Recording the release is what removes the lien.

Without a recorded release, an old paid-off lien can remain as a cloud on the title. Texas law sets deadlines and remedies for a lender that fails to record a release after payoff.

Source basis

Definition checked against the official sources below on .

On the exam

The release of lien removes the deed-of-trust lien after payoff. It is the closing bookend to the loan.

Exam trap

Paying the loan does not clear the record by itself. The recorded release is what removes the lien.

Tested in

Financing & Settlement (7 of 80 National)

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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.