What Information Goes on a Lien-Release Letter?

A lien-release letter must contain identifying information including date of the lien, name of lienholder, and property owner. In addition, it should include a legal description of the property, consideration for the release, signature and a disclaimer, according to the FDIC.

A lien-release letter must have the words "discharge of lien" or "lien-release" stated in a conspicuous spot at the top of the page, explains the FDIC. The very first paragraph should provide the identifying information, such as the date the lien was placed against the property, the name of the lienholder and the name of the property owner. If the lien was recorded in any county clerk's office, this should also be stated within the first paragraph, along with the date and location of the recording.

The second paragraph must provide a legal description of the property. If it is real property, the actual legal description from the deed for the property should be provided. The third paragraph should state what consideration the lienholder has received in order to release the lien, notes the FDIC. More than likely this consideration will be the payment of money, and said amount paid should be stated in the letter. Finally, the lien-release letter should contain a signature, preferrably of the lienholder, and the signature should be notarized.