Legal Definitions - satisfaction piece

A satisfaction piece is a formal written document that confirms a specific legal obligation or debt has been fully paid, performed, or otherwise discharged by one party, and the party to whom the obligation was owed acknowledges and accepts this completion. It serves as official proof that the obligation no longer exists and releases the obligated party from further liability related to that specific duty.

• Example 1: Mortgage Payoff

  Imagine a homeowner who has just made their final payment on a 30-year mortgage. Once the bank receives this payment and confirms the loan balance is zero, they will issue a document called a "satisfaction of mortgage." This satisfaction piece is then typically recorded with the county recorder's office, officially removing the lien from the property and proving that the homeowner has fulfilled their financial obligation to the bank.

• Example 2: Court Judgment

  Suppose a court orders one individual to pay a sum of money to another as a result of a lawsuit. After the individual pays the full amount of the judgment, the party who received the payment (or their attorney) will typically file a "satisfaction of judgment" with the court. This satisfaction piece formally notifies the court that the monetary obligation imposed by the judgment has been met, preventing any further collection actions related to that specific judgment.

• Example 3: Lien Release

  Consider a situation where a mechanic places a lien on a car owner's vehicle because the owner failed to pay for repairs. Once the car owner pays the outstanding repair bill in full, the mechanic would provide a "satisfaction of lien" document. This satisfaction piece confirms that the debt has been settled and allows the car owner to have the lien removed from their vehicle's title, demonstrating that their obligation to the mechanic has been discharged.