We filed a lien on a property and they are paying a check for a portion of what they owe. It does not say paid it full. I want to make sure if we deposit this that it does not void the full amount owed based on the lien.
Hello,
It does not void the entire lien. It voids the lien as to that amount.
Example: You lien for $1,000. You receive a check for $300. You should provide a lien release/waiver for $300 and, if you are still needing to enforce the lien, you cannot claim that $300 that you have been paid for.
E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com
Congratulations on collecting some of what is owed. A partial payment (if the money is actually received) reduces the outstanding balance. You should issue a partial release of lien for the amount paid.
Retain a construction attorney if you have any questions.
Good luck.