a deed of release is a formal legal document releasing possession of an asset or another kind of claim from one entity or person. a deed of release legally releases the terms of an agreement, either because it has been fulfilled, such as a mortgage loan that has been paid in full, or because it no longer applies, such as when an employment relationship ends. provided you’ve followed the requirements for pre-payments from your bank or other financial institution, you should be able to request a payoff amount that verifies exactly what is owed to release the entire debt. typically, a deed of release is a document you’ll want to keep in your long-term records. the deed of release removes liens from your property and ends any doubt as to who owns it.