Conditional Lien Release
What is conditional lien release?
A conditional lien release is a legal document that contractors or suppliers may request from the property owner or general contractor in the construction industry. It is a written agreement stating that upon receipt of payment, the lien rights of the party providing the release will be waived or abandoned. This means that the party will not file a mechanics lien against the property for the specified amount.
What are the types of conditional lien release?
There are two common types of conditional lien release:
Partial conditional lien release: This type of release is used when a contractor or supplier receives a partial payment for their work or materials. It releases the lien rights up to the amount of the payment received, but does not release the lien rights for the remaining balance.
Final conditional lien release: This type of release is used when a contractor or supplier receives full payment for their work or materials. It releases all lien rights for the specific project and confirms that all outstanding payments have been received.
How to complete a conditional lien release?
Completing a conditional lien release involves the following steps:
01
Start by providing the project details, including the name of the owner, general contractor, and project location.
02
Specify the type of conditional lien release being used: partial or final.
03
Enter the date of the release and the amount of payment being received or the total amount of the final payment.
04
Include a statement indicating that the release is conditioned upon the receipt of the specified payment.
05
Sign and date the document, and have it notarized if required.
06
Keep a copy of the completed release for your records.
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