What is the term for removing a lien from property upon full payment?

The term used to describe the action of removing a lien from a property after the debt has been fully paid is "Release." When a lien is released, it signifies that the borrower has cleared the obligation to the lender or creditor, effectively removing the legal claim against the property. This action is crucial in real estate transactions, as it ensures that the property can be sold or refinanced free of encumbrances related to the paid loan.

While "Discharge" and "Reconveyance" may sound similar, they have different contexts. Discharge generally refers to the cancellation of a debt, but it doesn’t specifically address the removal of the lien itself. Reconveyance, on the other hand, is a specific process that often refers to transferring the title back to the borrower after the loan is paid off, which may not necessarily imply that the lien is formally removed from public records.

Understanding these terms is essential for anyone involved in real estate transactions, as they are fundamental to ensuring the clear title of a property. The clarity of these terms helps navigate the complexities of mortgage loans and property rights.