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Should we release our lien?

California

Our customer/owner of hotel is requesting us to release our lien and says they will pay us upon receipt of substantial completion. Our last date of service was 4/30/21. They have made a payment and we are prepping a partial lien release with Levelset as we speak but should we release the lien entirely?

3 replies

Sep 25, 2021

A conditional release upon final payment is good things like this, I don't think a lot of people would advise to give an unconditional release on the full payment just yet. A competent construction attorney can talk you through this a little more in a quick phone call.

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Sep 25, 2021

Agreed - don't release all of your lien rights but a partial release is okay. Are you the GC, or a subcontractor on the project?

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Sep 27, 2021
I don’t recommend fully releasing your lien before you receive final payment. The partial release of lien is a much better idea. It releases the lien to the extent of the payment you received but keeps the rest. I’m happy to answer any questions you have about this.
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