What is the purpose of a discharge of mechanics lien?

If you have been paid on a project, or if you simply decide that you no longer want to keep a mechanics lien on a property, then you need to file a discharge of that mechanics lien. The purpose of the discharge of mechanics lien is to clear the property of the encumbrance placed on it: i.e. the mechanics lien.

When to file a discharge of mechanics lien.

A discharge of mechanics lien should be filed if the balance owed on the mechanics lien has been paid, if the mechanics lien has expired, or if the filed mechanics lien is, for some reason, invalid.

What happens if I file a mechanics lien discharge before I'm paid?

Be very careful when filing a mechanics lien discharge: once you file it, there is a large possibility that you will not  be able to re-file a mechanics lien on that property. Promises of payment will not renew your lien rights, so make sure you obtain payment before filing a mechanics lien discharge, or provide the discharge of mechanics lien to the owner at the time you are provided a certified check for payment of the amount you are owed for your mechanics lien. Often attorneys will hold a mechanics lien discharge in escrow for you until you have received full payment.

Need more information?

To find out more information on what your State requires, visit our FAQ section.