The process of releasing a lien on a property is called?

The process of releasing a lien on a property is known as reconveyance. This term specifically refers to the act of transferring the title of the property back to the borrower after they have repaid a loan, typically a mortgage. When a lender holds a lien on a property, they have a legal claim to it until the associated debt is satisfied. Once the debt is fully paid, the lender executes a reconveyance deed, which removes the lien and restores full ownership rights to the borrower.

In this context, if a borrower meets their obligations under the loan agreement, the reconveyance signifies that the lender relinquishes their claim, allowing the borrower to possess the property free of any encumbrances related to that particular loan. Understanding reconveyance is essential in real estate transactions, as it marks a crucial point in the completion of mortgage agreements and the associated financial responsibilities of the borrower.