Q: I sold property in Houston to an individual several years ago. It was owner-financed, and I carried the note. It appears the buyer will pay it off later this year. What do I have to do once the note is paid in full? I think I have to complete a Release of Lien and someone has to file it at the courthouse or annex. The person buying the property has never missed a payment, and I supply her with an annual statement showing what she paid in principal and interest and what is owed.
A: You are correct that you need to sign a Release of Lien, have it notarized, and then record it in the Harris County real property records. The original recorded document should be given to the buyer.
On HoustonChronicle.com: More legal guidance from Ronald Lipman
The Release of Lien is a document that should be prepared by an attorney. (I am not aware of any free and legitimate online resources.) It is typically only one or two pages long and therefore should not cost you much in legal fees.
