Texas Finance Code 343.108 – Release of Lien After Payoff by Mortgagor
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(a) In this section:
(1) “Mortgage servicer,” “mortgagee,” and “mortgagor” have the meanings assigned by § 51.0001, Property Code.
(2) “Release of lien” means a release of a deed of trust or other lien securing a home loan.
(b) Except as provided by Subsection (c), not later than the 60th day after the date a mortgage servicer or mortgagee, as applicable, receives the correct payoff amount for a home loan from a mortgagor, the mortgage servicer or mortgagee shall:
(1) deliver to the mortgagor a release of lien for the home loan; or
(2) file the release of lien with the appropriate county clerk’s office for recording in the real property records of the county.
Terms Used In Texas Finance Code 343.108
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- Property: means real and personal property. See Texas Government Code 311.005
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) If, on or before the 20th day after the date of the payoff of the home loan, the mortgagor delivers a written request to the mortgagee or mortgage servicer for the release of lien to be delivered to the mortgagor or filed with the county clerk, the mortgagee or mortgage servicer shall deliver or file the release of lien not later than the 30th day after the date the mortgagee or mortgage servicer receives the written request from the mortgagor.
(d) Chapter 349 does not apply to this section.
(e) A mortgage servicer is required to comply with this section only if the mortgage servicer has the authority to deliver or file a release of lien for the home loan.