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I have a lien on a project, can I do a partial lien release on half of the lots?

CaliforniaLien Releases

We lien a project, was informed we needed to lien each lot not just the project. We have received payment on 5 lots out of 9. The project contractor needs us to release the lots that have been paid to sale them. I am being informed due to being in Riverside County in CA, we are not able to release or modify our lien without risking the lien in whole. What do I do for the lots that have been paid and need to be released?

4 replies

Dec 9, 2020

If the county is requiring you to release the entire lien, you should consider entering into an agreement with the GC and developer to allow to you record new liens on the remaining lots. This is not an uncommon practice and you have the leverage since the lien is already in place. 

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Dec 9, 2020

Does that starting a new lien work after filing deadline has past?

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Dec 9, 2020

That is why you need to enter into an agreement with the GC and developer, so they don't contest the new liens.

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Dec 10, 2020

I'm assuming you initial lien list the parcel numbers or otherwise addresses the lots subject to the lien you recorded. Assuming so, it is relatively simply to do a partial lien release. You have to do it correctly, of course, so as to not release lots where money is still due. You'll want to hire a construction lawyer. Let me know if I can help. 

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