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A liability waiver, or release of liability, is a legal document that a company or organization has you sign in order to protect them from being sued in the event that you are injured.
What is a Release of Liability? California law requires you to notify the Department of Motor Vehicles (DMV) when a vehicle is transferred between owners. You must do this by filing the Notice of Transfer and Release of Liability (NRL) form within five days of the transaction.
Getting a release of liability from your mortgage means your lender has removed you from the loan and you are no longer responsible for the payments. If someone is left on the loan and defaults, the lender cannot legally come after you for the money once you have been released from liability.