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How long does a lender have to release a lien after payoff?
Texas gives a lender 60 days from a correct payoff to release the lien, or 30 days from a written request sent within 20 days. Read from the bill, worked.
In Texas, how long a lender has to release a lien after payoff is fixed by statute: until the 60th day after the servicer receives the correct home-loan payoff, by delivering the release to the borrower or filing it with the county clerk. A written request within 20 days of payoff moves that to 30 days from receipt.
This is an evergreen explainer, not news. On 3 October 2026 this desk read the enrolled text of H.B. 219, which added Section 343.108 to the Texas Finance Code, and the bill’s history (effective 1 September 2023). The codified statute page did not load; other states’ periods are not stated here.
How long does a lender have to release a lien after payoff in Texas?
Two clocks. Subsection (b) runs from receipt of the correct payoff amount (what that figure includes); subsection (c) from a written request delivered by the 20th day after “the date of the payoff”. The text counts days and does not mention business days.
The clock, worked
As an illustration, funds paid and received on 1 September 2026:
| Step | Date | Text |
|---|---|---|
| Correct payoff received | 1 Sep 2026 | 343.108(b) |
| Default release deadline | 31 Oct 2026 | 60th day |
| Last day to send a request | 21 Sep 2026 | 20th day, 343.108(c) |
| Request received 10 Sep | 10 Oct 2026 | 30th day after receipt |
The step before: sending a payoff statement and the good-through date.
What limits the rule?
Subsection (e) binds a servicer only if it has authority to release. Under Section 2 of the bill, a home loan agreement made before 1 September 2023 prevails on conflict. A Tenaco summary says the rule covers 1-to-4 family principal residences, not reverse mortgages or open-end accounts.
Questions borrowers ask
What happens if a lender does not release a lien?
Subsection (d) says Chapter 349 of the Finance Code does not apply to Section 343.108; the Senate Research Center’s analysis labels Chapter 349 “Penalties and Liabilities”. This desk does not state what remedy a borrower has. A timely written request and a county-record check are the practical steps.
How do I get a release of lien after paying off my mortgage in Texas?
Note when the payoff funds reached the servicer, then deliver a written request for the release by the 20th day after payoff. The deadline becomes the 30th day after the servicer receives it. Check both your post and the county clerk’s records.
How long does it take to get a lien release after payoff?
In Texas, by the 60th day after the servicer receives the correct payoff amount, or the 30th day after a timely written request. Those are outer limits, not typical times; this desk read no data on how fast servicers release.
None of this is financial or legal advice; read your own loan agreement.