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Short Answer:  You need to file a mechanics lien cancellation or mechanics lien release with the county or office where the lien was recorded.  Lien release documents must identify the lien and property being released, must meet strict statutory wording requirements, and usually must be notarized.  Be sure to secure payment before releasing the lien, because if payment falls through after you release your lien, you may be unable to get the lien back.

Long Answer: So, you’re about to receive payment and its time to release your lien.  Congratulations!  This is excellent news, and from here, getting the lien released is more about coordinating the timing of the payment and filings more than it is about making difficult collection decisions or negotiations.

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However, just because the process is non-controversial doesn’t mean its simple.  There are two areas of caution.

First, there is a friction between actually getting the money owed and having the lien released.  The paying party wants the lien released before paying, and the lien claimant wants to hold onto to the lien until the payment clears.  Be careful with this, because once the lien is released it’s released forever.  If a check bounces or payment falls through for some other reason, you’ll be unable to regain your lien rights, and they may be lost forever!

Frequently folks will engage an escrow company if they can’t agree on an exchange between them.  In this scenario, the paying party pays the escrowing agent, who holds the money in trust until the lien is released.  This way, both parties are satisfied that the money is safe until the deal is made. levelset offers escrowing services in Washington, Oregon, California and Louisiana, just contact us.

Second, you need to make sure you file the lien cancellation correctly.  Lien cancellations or lien releases are intricate documents, with each state and county requiring that they meet certain standards.  Some counties require the lien release to read a particular way before they will accept it, and some counties require the filing party to promise to hold the county harmless for any harm caused by the release.

Further, the lien release must be filed in the correct place, must reference the filed lien correctly, and the appropriate fee must be paid. Levelset  can handle your lien release or cancellation for the flat fee of $125 (which includes the filing fee).  Get Started by Ordering It Now – Well have your release prepared and sent for filing in no time!

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FAQ: We've Been Paid! How Do We Get The Lien Released?
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