What Is a Construction Lien Release?
A construction lien release is a document in which a contractor or subcontractor who performed work on a property indicates that he or she has been paid in full for work performed or materials supplied. It releases the interest the contractor has in the owner’s property and restores a clear title to the property owner. This document is dated and signed by the contractor before a notary public. When a contractor or supplier hasn’t been paid for his or her work, he or she has the right to put a lien against the property. The construction lien rules apply to subcontractors who are brought in to work on the project by the main contractor. In a situation where the contractor accepts payment and then doesn’t pay the subcontractors, the subcontractors can place a construction lien against the property until they have been paid.
