What is a Lien Release?
A Lien Release, in the context of the construction industry, is a legal document that essentially clears the title of a property from any debt or obligation related to construction work. When a contractor, subcontractor, vendor, or other party involved in a construction project is paid for their services, they can file a Lien Release to officially state that they've received compensation and waive their right to place a lien on the property in the future. This is particularly crucial in the construction sector because it minimizes financial risk and uncertainties for property owners. Typically, the Lien Release contains details of the project, the parties involved, the date and amount of payment. It's an important milestone in the completion and transfer of ownership of a construction project.