A more thorough explanation:

Definition: Satisfaction of lien refers to the fulfillment of all obligations made the subject of a lien. It can also refer to the document signed by the lienholder releasing the property subject to a lien.

Example 1: John took out a loan to buy a car and used the car as collateral. The lender placed a lien on the car until John paid off the loan. Once John paid off the loan, the lender signed a satisfaction of lien document, releasing the lien on the car.

Example 2: Mary hired a contractor to remodel her kitchen and agreed to pay for the work in installments. The contractor placed a lien on Mary's house until she paid off the full amount. Once Mary paid off the contractor, they signed a satisfaction of lien document, releasing the lien on her house.

These examples illustrate how satisfaction of lien works in practice. In both cases, the lienholder (lender or contractor) had a legal claim on the property (car or house) until the borrower (John or Mary) fulfilled their obligations (paying off the loan or contractor). Once the obligations were met, the lienholder signed a satisfaction of lien document, releasing their claim on the property.