✅ Release of Lien

What is a Release of Lien?

A Release of Lien (also called a "Lien Waiver" or "Satisfaction of Lien") is a legal document that removes a previously filed mechanics lien from a property's title. Once you receive payment, you're legally required to release the lien so the property owner can sell, refinance, or otherwise transfer the property.

Why It Matters

• Legal requirement: Most states require lien release within a specific timeframe after payment
• Avoid penalties: Failing to release a lien can result in fines or legal action
• Professional reputation: Quick releases build trust with property owners and GCs
• Clear title: Enables property transactions to proceed

Types of Lien Releases

• Conditional Release: Effective only upon actual receipt of payment (safer for contractors)
• Unconditional Release: Effective immediately upon signing (risky if check bounces)
• Partial Release: Releases lien rights for a specific payment amount, not the full contract
• Final Release: Releases all lien rights for the project upon final payment

When to Release

• After payment clears: Wait for funds to be in your account (not just a promise)
• Within state deadlines: Most states require release within 10-30 days of payment
• Upon request: Property owners often require release for final payment

How to File a Release

1. Prepare the release document — reference the original lien by date and recording number
2. Sign and notarize — most states require notarization
3. File with county recorder — same office where the original lien was filed
4. Pay recording fee — typically $25-$75
5. Send copy to property owner — proves you've released the lien

Best Practices

• Use conditional releases until payment clears
• Keep records of all releases filed
• Don't sign unconditional releases before payment
• Release promptly after payment to avoid penalties