A partial lien release should be submitted by the contractor who holds the lien when partial payment of the amount owed in made. Your obligation is to pay the outstanding contract balance directly to the contractor in question. It is the contractor's responsibility to release the lien when they have been paid. It is also their responsibility to partially release the lien if they have received partial payment. Although many may wait for further payment, as their are costs associated with notarizing and recording the partial release that they will want to avoid if possible. The contractor has 90 days from the date of recording to file legal action to foreclose the lien.
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Jun 3, 2020
I had an original balance of $24,300. I paid $5000, but did not receive a partial release of the lien. I reside in California.
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Jun 3, 2020
You should insist that they provide you an unconditional waiver and release for the $5,000.00 that you paid. They will need to actually file a partial release before they file the action to foreclose the lien. They have 90 days from recording the lien to file an action to foreclose. Do not pay any further money without receiving a conditional waiver and release for the amount in question before submitting a check and an unconditional waiver and release after the check has cleared for the amount you have paid.
If the 90 days from recording of the lien passes and they don't file a lawsuit, you can send a written demand, that complies with California Civil Code §§ 8480-8488, demanding that they release the entire lien. You will still owe the money, but the lien is expired and no longer can encumber the property. If they fail to release the lien, you can file a petition to have the lien expunged and to recover the costs of doing so against them.
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Jun 3, 2020
Yes, a partial lien release reduces the amount of the lien by whatever amount is shown in the document to have been paid. It still leaves the original lien on but the lien amount is reduced.