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Homeowner and release of mechanics lien in exchange for full (negotiated) one time payment.

CaliforniaLien Waivers

so if there is a properly filed mechanics lien on my property and I have negotiated with the contractor to file a release of the lien for a final one time payment, do I use the California Unconditional Waiver form? And if so does the contractor sign this first then go to the county recorders office and file the release of lien? what if he doesn't and has cashed my check? does he usually wait for the check to clear then files the release of lien? who pays for the court filing of the release of lien?

3 replies

Aug 6, 2021

You want a recordable/notarized release of lien, and an unconditional waiver from the GC and all subs that served 20-day prelims. You should arrange to meet the contractor at the County Recorder's Office and exchange the check for the release upon its recordation, to be safe.

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Aug 9, 2021

A conditional or unconditional waiver and release form does NOT release an already existing lien. You need a Release of Lien form for that. Although it’s still a good idea to get the contractor to sign and Unconditional Waiver & Release Upon Final Payment form at the time of the final payment so the contractor doesn’t try to file another lien on the property. Most contractors want a cashier’s check if you want them to immediately sign the Release of Lien form (which must be notarized as well). Otherwise they will wait until the check clears before signing the Release of Lien. If you don’t trust the contractor to do this, it’s probably best to get a cashier’s check and to physically exchange the check for the signed and notarized Release of Lien form with the contractor in person. You can then record the Release of Lien yourself. I’m happy to answer any questions you have about this.

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Aug 25, 2021

Thanks for the advise. I am about to do all that you suggested but unfortuanly due to the pandemic the county recorders office is closed to the public and no e-filing so I can only mail the release. So I wrote an agreement that the cashiers check in satisfaction of release of the mechanics lien can only be cashed/deposited when the recording has occurred. Makes sense to me but the contractor is not happy waiting for the recording of the release to occur. Oh well I say. Thanks again.

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