Our practice, Shannon, is to check the payoff statement to see if the lender has collected the release fee.  If they have, then we do not.  If they have not, then we collect.  If the lender sends us a release sans check and they have collected, we return it to them to have recorded.  If we have collected and they have not, we record.

We audit each file upon issuing a title policy.  If any unused funds that are due the borrower, such as release fee collected by us but release sent directly to the recorder, then we will refund the recording fee to the borrower at that time.