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Home>Levelset Community>Legal Help>Hello, our project received a lien from a contractor and also a a lien from their supplier. We do indeed owe funds to them and are making a p final paymnt to them . Before making the last payment to them do I request a Conditional Final release from them and after the check has been cashed a Demand letter requesting to remove the lien . ? What is the best way to proceed ?. Thank you

Hello, our project received a lien from a contractor and also a a lien from their supplier. We do indeed owe funds to them and are making a p final paymnt to them . Before making the last payment to them do I request a Conditional Final release from them and after the check has been cashed a Demand letter requesting to remove the lien . ? What is the best way to proceed ?. Thank you

CaliforniaLien ReleasesLien Waivers

Lien attached to project

1 reply

Aug 14, 2018
The path forward depends on a few factors - but specifically whether the liens have actually been filed, or if they have just been threatened.

If a notice of intent to lien was delivered, or the claimants just otherwise informed of the possibility of a lien, a conditional waiver prior to payment and/or unconditional waiver commensurate with payment is likely the way to go. The potential claimants don't waive rights until payment is made, and once the payment is made the waivers protect the property from subsequent lien filings.

If the liens have been filed and served properly, and are currently encumbering the property, a waiver is not going to be the way to go. A waiver relates to the ability to file a future lien. If a lien has been filed it must be cancelled/released.

Final payment may be made pursuant to a demand/request to have the lien removed. This should not cause any problems, since the debt giving rise to the lien has been paid, and once payment had been made, the lien would no longer be enforceable anyway.
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