Yes, this can be done by mail. You will need to complete the Vehicle Registration/Title Application or Application for Title.
Where can a dealer find information about getting a lien removed from a title?
I have another question about transfer a title certificate. Do I hand over the original evidence or a copy to the new owner?
You can transfer the title certificate and give the new owner the original proof that any lien listed on the title certificate was satisfied. Keep a copy of the proof for your records