Release of Lien Template for Nigeria

A Release of Lien is a legal document that removes a creditor's claim against your property in Nigeria. When you've fully paid off a debt that was secured by your assets - like a mortgage on your house or a loan on your business equipment - the lender signs this release to officially clear the debt record.

Under Nigerian property law, this release proves you now have complete ownership rights, free from any encumbrances. Banks, mortgage companies, and other lenders typically provide this document within 30 days of final payment. Having this release is crucial when you want to sell your property or use it as collateral for future loans, as it shows potential buyers or lenders that no one else has claims on your assets.

Get a Release of Lien when you've paid off any secured debt in Nigeria and need to prove you own your property free and clear. Common situations include finishing mortgage payments, clearing construction liens, or paying off equipment loans. This document becomes essential before selling property, refinancing with a new lender, or using assets as collateral for business expansion.

Timing matters - request your Release of Lien immediately after making your final payment. Nigerian law requires lenders to provide this release promptly, but delays can hold up your next transaction. Having this document ready prevents complications during property transfers and helps maintain clean records with the Nigerian land registry system.

• Lien Satisfaction Letter: Used when fully paying off a debt, providing formal confirmation from the lender that all obligations are met
• Lien Waiver: Common in construction projects, where contractors give up their right to place a lien against the property
• Lien Release Letter: A more detailed release used for complex transactions, often including payment terms and property details
• Unconditional Final Release: Provides immediate, complete release without conditions, typically used after receiving full payment
• Title Release Letter: Specifically releases liens on vehicle titles or other movable property

• Banks and Financial Institutions: Issue Release of Lien documents after receiving full payment on mortgages or secured loans
• Property Owners: Request and receive the release to prove their unencumbered ownership rights
• Construction Companies: Provide releases after receiving payment for completed work on properties
• Legal Practitioners: Draft and review releases to ensure compliance with Nigerian property laws
• Land Registry Officials: Process and record releases in official property records
• Corporate Lenders: Issue releases for business assets and equipment after loan satisfaction

• Basic Details: Gather property description, lien amount, and original lien recording details
• Party Information: Collect full legal names and addresses of both lender and property owner
• Payment Verification: Document final payment date and amount, keeping proof of transaction
• Property Documents: Have original lien document and property title information ready
• Digital Tools: Use our platform to generate a legally-sound Release of Lien that meets Nigerian requirements
• Signatures: Arrange for notarization and proper witnessing as required by Nigerian law
• Recording Details: Note the jurisdiction and registry where the release needs to be filed

• Property Description: Detailed identification of the property, including registration details and physical address
• Original Lien Details: Reference to the initial lien document, including registration date and amount
• Release Statement: Clear declaration releasing all claims and interests in the property
• Party Information: Full legal names and addresses of lienor and property owner
• Consideration Clause: Statement confirming receipt of payment or other valuable consideration
• Execution Block: Signature spaces with notarization requirements per Nigerian law
• Governing Law: Explicit statement that Nigerian law governs the release
• Attestation: Witness signatures as required by local registry regulations

A Release of Lien differs significantly from a Lien Waiver in several key aspects under Nigerian law. While both documents relate to property rights, they serve distinct purposes and are used at different stages of transactions.

• Timing of Use: A Release of Lien comes after debt payment to remove an existing lien, while a Lien Waiver prevents future claims before work begins or payment is made
• Legal Effect: Release of Lien terminates an active claim on property, whereas a Lien Waiver surrenders the right to file a future lien
• Common Context: Releases typically involve banks and mortgage completion, while waivers are common in construction projects and contractor agreements
• Documentation Required: Releases need proof of debt satisfaction and original lien details, but waivers mainly require project specifications and payment terms