Lien Release Letter Template for Nigeria

A Lien Release Letter is a critical document in Nigerian secured lending and property transactions, used when a borrower has fully satisfied their debt obligations and the lender needs to formally relinquish their security interest. This document is essential in various contexts, from releasing mortgages on real estate to removing security interests in business assets. The letter must comply with Nigerian law, particularly the Secured Transactions in Movable Assets Act 2017 and other relevant legislation. It typically includes specific details about the original lien, confirmation of debt satisfaction, and explicit release language. The document serves multiple purposes: it provides the debtor with clear evidence that the lien has been released, helps maintain accurate property records, and facilitates future transactions involving the previously encumbered asset. In the Nigerian context, proper execution and registration of a Lien Release Letter is crucial for maintaining clear title to property and ensuring compliance with local security and property laws.

1. Letter Header: Date, sender's details, recipient's details, and reference number

2. Subject Line: Clear indication that this is a Lien Release Letter with reference to the specific property or asset

3. Original Lien Information: Details of the original lien including date created, registration details, and property/asset description

4. Confirmation of Debt Satisfaction: Statement confirming that the underlying debt has been fully satisfied

5. Release Declaration: Formal statement releasing all rights, title, and interest in the property/asset

6. Authorization: Statement of authority to release the lien and execute the letter

7. Signature Block: Space for authorized signatory, including name, title, and company stamp if applicable