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Payoff · State comparisonMortgage release after payoff by state: deadlines, penalties and who can push it

After closing pays off the seller's loan, the lender still has to record a release – a satisfaction, discharge, certificate of satisfaction or reconveyance – or the old lien stays on the title. Most states covered here set a deadline and a remedy, and the clock starts differently: from the payoff itself in Florida, Kentucky, Maine, Utah, Delaware and Iowa (Fla. Stat. §701.04(2); KRS 382.365; 33 M.R.S. §551; Utah Code §57-1-38; 25 Del. C. §2111; Iowa Code §655.1), from a written request or demand in South Carolina, Connecticut, Minnesota, Washington, Missouri, Kansas, Montana, Wyoming and Alaska (S.C. Code §29-3-310; Conn. Gen. Stat. §49-8; Minn. Stat. §507.41; RCW 61.16.030; RSMo 443.130; K.S.A. 58-2309a; MCA 71-1-212; W.S. 34-1-132; AS 34.20.050), and in Virginia from payment or the settlement agent's notice (Va. Code §55.1-339). Penalties range from actual damages in Minnesota to up to half the debt or $25,000 in South Carolina. Some states let the closing side finish the job: in Texas a title company that paid the loan per the payoff statement can record an affidavit as release of lien after notifying the lender, which has 45 days to controvert it (Tex. Prop. Code §12.017); in Virginia a settlement agent or title insurer can record a certificate of satisfaction after notice and 90 days, in Kansas the lender or closing agent that paid can enter satisfaction 20 days after demand, in Utah a title insurer or agent can reconvey after a 60-day notice, in North Dakota a title insurer can record a certificate of release on loans up to $500,000, in Delaware an attorney who paid can record an affidavit after 60 days, and in Washington the title company, escrow agent or attorney that paid can record a declaration of payment after 120 days.

The states

  1. Florida (§701.04(2))

    Release signed and sent for recording within 60 days after payoff; recorded copy to the owner.

  2. Kentucky (KRS 382.365)

    30 days from satisfaction; $100 a day from day 15 after notice, $500 a day after day 45.

  3. Missouri (RSMo 443.130)

    45 days after a demand letter; lesser of $300 a day or 10% of the loan.

  4. Texas (Prop. Code §12.017)

    Title company may record an affidavit as release after paying per the payoff statement and notifying the lender; 45 days to controvert.

  5. Virginia (§55.1-339)

    90 days; $500 forfeiture; settlement agent may release after notice.

  6. South Carolina (§29-3-320)

    3 months after request; up to half the debt or $25,000.

  7. Connecticut (§49-8)

    60 days after request; $200 a week up to $5,000 or actual loss.

  8. Maine (33 M.R.S. §551)

    Recorded 60 days after payoff; $200 a week up to $5,000 or actual loss.

  9. Minnesota (§507.41)

    10 days after request and tender; actual damages.

  10. Washington (RCW 61.16.030, 61.24.110)

    60 days; declaration of payment after 120 days.

  11. Kansas (K.S.A. 58-2309a)

    Forthwith; $500 after 20 days from demand; closing agent may release.

  12. Utah (§57-1-38)

    90 days from final payment; greater of $1,000 or treble damages; title company may reconvey.

  13. Delaware (25 Del. C. §2111)

    60 days from satisfaction; $10–$500 damages, up to $1,000 if willful; attorney affidavit.

  14. Iowa (§§655.1, 655.3)

    30 days from payoff; damages, $500 and attorney fees.

  15. North Dakota (§§35-03-16, -19)

    Discharge recorded 30 days after signing; title company release up to $500,000.

  16. Montana (MCA 71-1-212)

    90 days after request; $500 plus actual damages.

  17. Wyoming (W.S. 34-1-132)

    30 days after a certified-mail request; 0.10% of principal a day, max $100; title company may release.

  18. Alaska (AS 34.20.050, 34.20.115)

    10 days after request and tender; $300 plus damages; title insurer reconveys after 90 days.

What the TC checks in any state

  • The payoff date and the confirmation that the lender received the funds.
  • The recorded release in the county records, a few weeks after closing.
  • If it's missing: the statute's written request, sent the way the statute requires, with proof of delivery.

Questions about mortgage releases

Who records the release of a paid-off mortgage?

The lender (or its servicer or trustee) in each of these states; some also let the settlement agent, title company or closing agent do it in some cases – Texas, Virginia, Kansas, Washington, Utah, Delaware, North Dakota, Wyoming and Alaska.

Does the clock start at payoff?

In Florida, Kentucky, Maine, Utah, Delaware and Iowa it runs from payoff; in most of the others from a written request or demand.

The state guides

ClosingCode adds a post-closing task to confirm the seller's paid-off mortgage release was recorded, with an owner and a due date.

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Sources: Tex. Prop. Code §12.017; Fla. Stat. §701.04; KRS 382.365; RSMo 443.060, 443.130; Va. Code §55.1-339; S.C. Code §§29-3-310, 29-3-320; Conn. Gen. Stat. §49-8; 33 M.R.S. §551; Minn. Stat. §507.41; RCW 61.16.020–.030, 61.24.110; K.S.A. 58-2309a; Utah Code §§57-1-38, 57-1-40; 25 Del. C. §§2111–2120; Iowa Code ch. 655; N.D. Cent. Code §§35-03-16–35-03-19; MCA 71-1-211–71-1-213; W.S. 34-1-130–34-1-147; AS 34.20.040–34.20.115 (official state sites, read for the linked guides).

General information, not legal advice. Each state links to the guide with the details. ClosingCode is software; it is not a law firm. This guide is not a substitute for the advice or services of an attorney.