A lien release on a car is a document that confirms that a lender has removed the lien on a vehicle after the loan has been fully repaid. A lien is a legal claim on property to ensure payment of a debt. When you borrow money to purchase a car, the lender files a lien on the vehicle with the state to ensure that if the loan defaults, the lender can take the car. The lien assures the lender that if payments aren’t made as agreed, they have a right to take the property in question and can sell it to minimize their losses. Once the loan is fully repaid, the lender provides a release of the lien, which is a document that confirms that the lien has been removed from the vehicle. The release of lien is provided by the lender and can be requested through the DMV or directly from the lender. The DMV verifies that they received the loan satisfaction documents and any liens are removed from the vehicles title. A new title will be provided or issued to the owner. The lien release can be executed in the lien release section located on the front of the certificate of title, on a prescribed form, or on the lienholder’s letterhead. The release of lien requires an original signature and must be dated. Once the lien is released, the car is owned "free and clear" by the owner.