What is a Lien Release?
A Lien Release is a form that removes a lien on a property once the property owner pays the lienor in full. The lienor is the person who placed the lien against the property.
A lien is a protective legal document that establishes the lienor’s claim to another party’s assets to satisfy a debt or outstanding payment. In regards to a Mechanic’s Lien, the lienor is usually a service provider or material supplier who places a lien against a property to ensure they get paid. If a property has an outstanding lien against it, the owner cannot sell the property until the lien is resolved.
A Lien Release is also known as a:
- Builder’s lien release
- Mechanic’s lien release
- Lien cancellation
- Lien satisfaction letter
- Discharge of lien
Who releases and files a Lien?
The person who places a lien on a property is the lienor. For example, a contractor or supplier that puts a lien against a property owner’s home to ensure they are paid is a lienor. A lienor may also be referenced as the lienholder or lien claimant. In regards to a Mechanic’s Lien, a lienor may be a:
- General contractor
- Carpenter
- Drywall installer
- Framer
- Electrician
- Painter
- HVAC specialist
- Roofer
- Landscaper
- Plumber
Generally, the lienor who filed the initial lien against a property creates and files a lien release once they receive payment. However, if the lienor has created a Power of Attorney and appointed an agent, their agent may also file a lien release on their behalf.
How do I get a Lien Release?
You can create a Lien Release by using our simple document template. LawDepot’s Lien Release template is customized to your jurisdiction’s laws and requirements, so you can be confident that your release form is legally enforceable and contains all the necessary information.
Once you’ve filed a Lien Release, you should receive a copy of the form labelled as “filed.” You must send a copy to the appropriate person, such as the property owner or contractor that paid you. Sending them a copy for their records is important and informs them that the lien is officially released.
What’s included in a Lien Release?
To create a Lien Release, provide the following information:
- Lienor information: Provide the lienor’s full name.
- Property owner information: Provide the property owner’s full name and specify whether there is a single owner or multiple owners.
- Hirer information: If you were in a direct contract with another hirer, such as a contractor, provide the name of the person who hired the lienor.
- Lien payment details: Specify the amount the property owner paid to satisfy the lien.
- Registration details: Provide the date that the lien was registered and the lien’s registration number. Also, specify if the lien claim has been assigned or transferred.
- Property details: Provide the property’s legal description (e.g., lot, plan, block, concession, geographic township, PIN, etc.).
- Signing details: Specify whether the lienor or an appointed agent will sign, and provide the signing date.
What’s the difference between a Lien Release and a lien waiver?
A lien waiver is a document that surrenders the signing party’s right to place a lien against a property. Property owners may ask contractors, subcontractors, or suppliers to sign lien waivers as a preemptive measure to prevent them from placing liens against properties.
In contrast, a Lien Release removes a lien on a property and is only required after the lienor files the lien and the property owner pays.
Where do I file a Lien Release?
File a Lien Release in the same court or office where you filed the initial lien, such as a Mechanic’s Lien. You may also have the option of sending in a Lien Release by registered mail. In this case, you may have to include money for release fees. To inquire about any possible fees or requirements that you should be aware of, contact your land titles or registry of deeds office.
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