Everything You Need to Know About Construction Lien Releases

Construction Lien Release

The path to a lien release can take many different roads, but they all usually start with the same issue: a construction payment dispute happened. After some attempts at collecting payment, the contractor or supplier that is owed money realizes that time is running out to file a construction lien, and finally decides that now is the time to file a lien. The owner, who gets a copy of the lien soon after it is filed, realizes that the building that was just built or renovation is now in jeopardy because the lien puts a restriction on the owner’s deed. Suddenly, the same people who could not find their way to releasing payment for work performed, have a change of heart, resolve the payment dispute and pay the contractor. Once that payment is made, the construction lien needs to go away so the owner can have his unblemished title to the property. Construction lien releases effectuate the removal of the lien, signaling the end of the payment dispute.