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Should I sign a lien release after the paying party promises to satisfy my debt in California?

CaliforniaLien Releases

Hi! We have used Levelset to send a preliminary notice and to file a Mechanic Lien for non-payment. Now, an escrow company is trying to settle this dispute for the non-paying customer because they are trying to sell the property. The escrow company is requesting a Demand form. It states... “It is the intent of the parties to the above referenced escrow to pay the above referenced lien in full upon closing. A copy of the lien is attached for your reference and use. In order to comply with these intentions, you are requested to fill in and sign the demand set forth below and return the original to us, together with your Full Release of Lien, which will be recorded only when we have funds necessary to satisfy your demand”. Does this sound reasonable in order to settle this outstanding payment? We appreciate any help. Thank you.

3 replies

Feb 12, 2020
Yes, this is a typical request from an escrow company when a lien will be settled from the proceeds of an escrow.  Be sure to carefully fill out the demand including within the amount any interest that may be due on the principal amount of the lien and any recording costs paid to record the lien.  
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Feb 12, 2020
Hi Peter, By signing this demand request, does this mean we are releasing the lien before payment is made?. What does this form hold us accountable for? Also, are there consequences to not signing if our owner will only release lien if payment is made? He is reluctant to sign something our company has nothing to do with. Thank you for any additional help.
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Feb 12, 2020
Hi Peter, By signing this demand request, does this mean we are releasing the lien before payment is made?. What does this form hold us accountable for? Also, are there consequences to not signing if our owner will only release lien if payment is made? He is reluctant to sign something our company has nothing to do with. Thank you for any additional help.
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