If you’ve exercised your mechanics lien rights and received payment for the disputed amount, then the payee will likely ask you to file a lien release. In this article, we’ll discuss everything you need to know about filing a construction lien release, which is also commonly referred to as a mechanics lien release form.
A lien release form essentially cancels a mechanics lien previously filed against a property. Typically, the property owner, original contractor, or other payees will require a mechanics or construction lien release when the payment dispute is resolved. Once you file the mechanics lien release form with the county records office, the mechanics lien becomes null and void.
Who Files a Construction Lien Release?
A contractor, subcontractor, or supplier who files a mechanics or construction lien against a construction project in Texas is required to release their claim under the following circumstances:
- The dispute has been resolved and settled.
- Payment has been issued and received for the claim (note: a partial payment may in some circumstances result in a partial release)
- A lien release is requested by the owner, contractor, or party that made payment
The wording of the Texas lien release is interesting. The language is often negotiated between the parties because the payee may require certain language or terms. Overall, once payment is made and a lien release is requested, the mechanics lien claimant should promptly sign the lien release form and provide it to the owner, contractor, or party that made the payment. Either the claimant or the person requesting the lien release can file it in the property records. Once the lien release has been filed, then the lien on the property is released. Caveat, it’s wise to make sure payment clears the bank before filing a construction lien release.
Which Lien Release Form Do I Use?
Unlike other mechanics lien documents, Texas Construction laws do not require a state-mandated mechanics lien release form. Instead, the law dictates the mechanics lien release simply be a form that is fileable with the required information (which is outlined in the next paragraph). Unfortunately, this leaves plenty of room for questions – especially since each Texas county may have different filing requirements. In general, it’s a good rule of thumb to use a general lien release form, such as the one provided at www.texaseasylien.com.
The following information must be included on your mechanics lien release form – as follows:
- Property address (and/or legal property description)
- Name and company information of the entity that initially filed the mechanics lien
- Although not required, it is good practice to include County document number assigned to the mechanics lien previously filed with the property records
If you are still unsure of what to do when a construction lien release is requested, Texas Easy Lien has you covered. Visit www.texaseasylien.com for more information on the Texas lien release and other state approved mechanics lien and construction bond claim documents. We make the lien process easy, quick, and affordable.
