IRS Lien Release

In the release of lien process a lien waiver is a document from a contractor, subcontractor, material men, equipment lessor or other party stating that they have received payment and waive any future lien rights to the property. There are typically four types of lien releases:

Conditional release on Progress Payment - The safest waiver for claimants, this waiver generally specifies that if they have indeed been paid to date the waiver is an effective proof against any lien claim on the property.

Unconditional lien release on Progress Payment - This waiver releases all claimant rights through a specific date unconditionally.

Conditional release on Final Payment - This waiver releases all claimant rights to file a lien release if they have indeed been paid to date.

Unconditional Final release Final Payment - The safest waiver for owners, this waiver generally releases all rights of the claimant to place a lien on the owner’s property unconditionally. It is irrelevant if the payment check has been returned or stopped payment. Claimants should issue this type of release only when they are positive their work is done and the payment has cleared in their bank. Owners should need this release when they are paid in full.

In the United States some states only use a Conditional Waiver on Progress Payment and an Unconditional Waiver on Final Payment.

The lien release process can be of great value to contractors, subcontractors, material men and other related parties to a construction work in enforcing their claims, if done according to the laws of the various states, or the federal government. These parties are entitled to be paid for their material and labor contributions to the improvement of real property. Most forms for the process can be obtained from a local office supply stores, and a few computer programs exist to handle the process on a nationwide basis.

To obtain a release of lien on Homes, Buildings, Improved or Unimproved Land, Mechanic's Liens provide us with the following required document:

A copy of the Mortgage or Deed of Trust Document that you are requesting to be released should be submitted. The copy must be legible and clearly show the recording information. This document can be obtained from the Public Records in the County where the property is located or from your title company or your title attorney.

It is advised that you also provide the following documents, if available:

Proof that the loan was paid completely. Proof of Payoff may include things such as a copy of a "PAID" Note, a Settlement Statement, copies of payment checks, or anything else that would indicate payment. This will greatly reduce the research time and expedite our handling of your request.

A copy of a recent Title Search or Title Commitment, or Attorney's Title Opinion on the property for which you are requesting release. This is especially helpful in cases where the Mortgage documents are of poor quality and are illegible. Your Title Company or Title Attorney can provide you with this.