Partial Release of Liens and Subordination of Liens

Partial release of lien

A partial release of lien releases a state tax lien (also known as a state tax execution) from a specific piece of property.  However, the lien remains in effect and will block the transfer of title of any other properties owned or later acquired by the taxpayer.  A person typically requests a partial release of a state tax lien when there is a need to transfer the rights to a particular piece of property when there is not enough money to fully pay the state tax lien.

Subordination of lien

A subordination of a state tax lien (also known as a state tax execution) is not the same as a partial release of lien.  A subordination of a state tax lien lowers the priority of the Department’s lien in favor of some other lien against the property.  The state tax lien remains in effect and will encumber the sale of the specified property and any other property owned or acquired by the taxpayer.  A person typically requests a subordination of a state tax lien when refinancing a loan.

How to request either a partial release or subordination of state tax lien

For a partial release of lien, complete Form CD-14135 (Application for Certificate of Release of Property from State Tax Execution).

For a subordination of lien, complete Form CD-14134 (Application for Certificate of Subordination of State Tax Execution).

During the evaluation process we will:

  • Review the reason and substantiation for the request
  • Verify that the property is being sold at or near fair market value
  • Determine that the industry standard fees/commissions are charged
  • Confirm only senior lien holders and/or judgment creditors are paid

Important: Please submit your request at least 21 days before the escrow closing date to allow sufficient time for review, determination, notification, and the furnishing of any additional documentation.  Failure to provide a complete package will result in a delay in processing time.

If you have questions about a notice or call you’ve received, please call 404-417-6543 for assistance.