We are a Sub to a Sub and filed a ML on 6.22.22. Our Contractors states they have not been paid and said they can not get paid UNLESS we release the ML. They also states we did not have a right to include the Retention however, we are complete on our portion of contract and starting 4.22 the building is being occupied. The General Contractor is in Alabama - our Contractor is in California and we are the Sub in California
You can do a conditional lien release in exchange for payment. I would under NO cirumstances release the lien until you get paid: this is why you do a "conditional" lien release. Hope that helps. There's lots to unpack here, but that is my gut reaction.
Based on the timing set forth in your question, it seems very risky to release your lien. Prepare to timely file a lawsuit to foreclose upon your lien.