this customer we sent a lien to, is now wanting something stating once we are paid we will remove the lien..
there is a pre lien notice in our contract but he wants something stating we will release the lien once we are paid in full.
1 reply
Jun 17, 2020
§ 29-5-430 of South Carolina's lien statute requires that a lien claimant release their lien once it's paid (and, the parties making payment are generally required to pay for the claimant's lien release). So, as a matter of law, claimants must release their liens once they're paid. The customer or owner shouldn't need an additional document reinforcing that.
Still, it is common for an owner or customer to want additional assurance. And, drawing up an extremely simple document that states you'll release the lien once it's been fully paid should be a relatively easy solution that may be worth exploring. After all - you'd simply be restating what you're already required to do, anyway. Including a statement that requires the customer/owner to pay for the lien release and citing to South Carolina might be a wise move, too.
Finally, keep in mind that it's common for there to be tension when trying to exchange payment for a lien release. This article discusses that tension in detail: Construction Lien Release Process: the Timeline is Tricky.