Finance

What is a 'release of lien' in Idaho real estate?

ARemoving a person from ownership

BA document recorded by a lienholder confirming that the lien has been paid and the property is released from the encumbrance✓ Correct

CA court order releasing a foreclosed property

DPermission to refinance from the lender

Explanation

A lien release (or satisfaction, reconveyance, or discharge) is recorded by the lienholder after the underlying debt is paid, removing the lien from the property's title. For a deed of trust, the trustee records a 'deed of reconveyance.'

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Key Terms to Know

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.