A lien release is a legal document that removes a lien claim from a property, whether its real estate, a vehicle, or something else. A lien is a claim on property to ensure payment of a debt. When a tradesperson does work on a property, they may file a lien to ensure they get paid. A lien release is filed by a contractor, subcontractor, materials supplier, equipment lessor, or other party to the construction project, stating they have received payment and waive any future lien rights to the property. There are typically four types of lien waivers:
- Conditional waiver on progress payment: This waiver specifies that if the claimant has indeed been paid to date, the waiver is an effective proof against any lien claim on the property.
- Unconditional final waiver final payment: This waiver releases all rights of the claimant to place a mechanics lien on the owners property unconditionally. It is immaterial if the payment check has been returned or stopped payment.
- Partial waiver on progress payment: This waiver releases the lien claimants rights to a portion of the payment, but not all of it.
- Unconditional partial waiver final payment: This waiver releases the lien claimants rights to a portion of the payment, but not all of it, unconditionally.
It is important to note that a lien release is not the same as a lien waiver. While a release removes an existing lien, a waiver is an agreement that prohibits a contractor or supplier from placing a lien on the property. A lien release must be filed with the county clerk in the office where the lien was originally recorded. The release form must clearly state the names of the parties involved and whether the release is final or partial.
