When a debt has been settled, the party who previously filed a lien must officially remove their claim on the asset. A Lien Release is the formal legal document that confirms this.

A Lien Release clears the property title, confirms the lienholder has no further interest, and allows the property owner to proceed with sales, transfers, or refinancing without legal encumbrance.

This document is especially important in industries such as construction, real estate, and finance.

What is a Lien Release?

Let's start with the definition of lien:

a legal claim placed on property—often real estate—by a creditor (the Lienholder) when money is owed for work or services.

A Lien Release therefore is a legal document that confirms the removal of a previously registered lien. Once a debt is fully paid, the Lienholder issues a release, confirming the claim is no longer in effect.

Without a formal release, the lien may remain on public records, potentially blocking property sales or refinancing efforts.

When Is a Lien Release Needed?

A Lien Release should be used when:

• A contractor has received full payment for construction or repair work.
• A mechanic’s lien or builder’s lien has been satisfied.
• A lender's legal claim over property is no longer valid.
• A court order or legal judgment has been settled in full.

In all of these cases, the party holding the lien must officially discharge the lien to clear the title and confirm that no further claims exist.

Why Is a Lien Release Important?

A Lien Release protects both parties:

1. For the property owner
   It confirms the debt is resolved and clears the legal title.
    
2. For the lienholder
   It ensures they have no further legal responsibility and confirms satisfaction of the contract.
    
3. For future transactions
   It prevents delays in refinancing, sales, or new legal filings.
    
4. For legal compliance
   In many jurisdictions, failing to release a lien after payment may carry penalties.

Creating a Lien Release with Bind ensures the process is professional and ready to submit to the relevant authorities.

Lien Release – Free Template

This Lien Release Agreement (“Release”) is made and entered into by and between:

(1) [Company Name], a company incorporated in [Country], with Company Number [Number], and having its registered office at [Address] (the “Lienholder”); and  
(2) [Company Name], a company incorporated in [Country], with Company Number [Number], and having its registered office at [Address] (the “Property Owner”).

• The Lienholder previously filed a lien (the ''Lien'') on the property located at [Address] (the “Property”) for [Specify the reason for the field lien] dated [Date].  
• The Property Owner has now satisfied all outstanding amounts due in full.

NOW, THEREFORE, the Parties agree as follows:

1. Release of Lien
The Lienholder hereby releases and discharges any and all liens, claims, and rights against the Property arising from the previously filed Lien.

2. No Further Claims
The Lienholder confirms that no further claims, demands, or actions will be made against the Property Owner in relation to the Lien or the contract giving rise to it.

3. Acknowledgment
The Lienholder acknowledges that this Release serves as full satisfaction of the debt and agrees to remove or discharge any public lien records associated with the Property.

4. General Provisions
- Any invalid provision shall not affect the remainder of this Agreement.
- This Release supersedes all prior oral or written agreements regarding the lien.  
- Failure to enforce a provision is not a waiver of that right.  
- The Parties agree to take additional steps if needed to finalise this Release.
- Dispute Resolution: Disputes will first be resolved via good-faith negotiation, then binding arbitration if needed.

5. Governing Law and Jurisdiction
This Release shall be governed by the laws of [Country]. The Parties agree that the courts of [City, Country], shall have exclusive jurisdiction over any disputes related to this Release.

Signatures
This Agreement has been signed digitally.

Create a Lien Release in minutes with Bind

Bind makes it easy to generate clear, correct legal documents like a Lien Release. Whether you’re a contractor, real estate business, or property owner, Bind helps you release liens formally and quickly—so you can move forward without legal encumbrances.