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Lien release

A lienholder's written or electronic confirmation that a vehicle loan has been paid and its claim removed.

A lien release is the document, or electronic notice, from a lienholder confirming that the debt secured by a vehicle has been paid and its claim is removed. Some lenders sign a section on the title itself; others send a separate letter.

Keep the original. A paid-off loan can still appear on the title record, and buyers, DMVs and junkyards may ask for proof before they accept the car.

Texas requires an original release of lien from the lienholder when a paid-off lien still appears on the title, and a fax or photocopy is not acceptable.1 When a Texas lien was recorded on a paper title, removing it requires the title, the release letter and a completed title application.2

References

  1. Texas Department of Motor Vehicles, “Get a Copy of Your Vehicle Title”, https://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/get-a-copy-of-your-title ↩

  2. Texas Department of Motor Vehicles, “Add or Remove a Lien on a Vehicle”, https://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/add-remove-lien ↩

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