A lien release is neeed to remove a property lien. Property liens are financial claims (or holds) against a property that must be repaid before the property can be sold.
Simply put, a lien is a claim against a property that ensures a debt or other obligations are either paid or met. This may include supplies and services to contractors and/or subcontractors for work rendered on your property.
What is a Lien Release (Lien Waiver)?
A lien release (lien waiver) is a document which states that a lienholder has lifted or waived the lien. A lienholder is a person who has put a lien on a property. A signed lien release signals that the property is now free of a debt and may be sold.
Example of use for a lien release
For example, in cases where there is a mechanic’s lien (construction lien) on a property, a lien waiver (lien release) may be presented at the time of payment by either the contractor or the property owner.
Once signed, this waiver ensures that both parties agree the service has been paid in full. It may also state that the contractor waives the right to place a lien on the property in the future.
Note: Who can file for mechanic’s liens against your property?
- Construction companies
This type of lien is not limited to the list above.
Ways of Attaching a Property Lien
A range of creditors may have the right to attach a lien to your property if other avenues of claiming a debt are depleted.
When a bank approves a loan for a real estate property, that loan is a form of conditional ownership by your loan provider. Only when the mortgage is paid in full will the lien be released by the loan provider and the property will be yours.
If a contractor or subcontractor has worked on your property or supplied materials for your property and they have not been paid, a lien may be placed on your property called a mechanic’s lien.
Child Support Alimony Liens
If child support or alimony is not paid, the recipient may have the right to place a lien on your property. This lien will stay until the debt is satisfied.
If the judgment is not paid, the recipient may have the right to place a lien on your property.
Property Tax Liens
If property taxes are not paid, the local government can place a lien against your property until the debt is satisfied.
If you owe back taxes and fail to pay after receiving notice from the IRS, a lien can be placed on your property until the debt is cleared.
With a signed lien release, transferring your property may be a simple process.
Do you have questions about lien releases? Speak directly with attorney Scott Steinbach at 972-960-1850 for a free consultation.
If you need to put a lien on Texas property, the Steinbach Law Firm can help.
R. Scott Steinbach is AV Preeminent rated by Martindale-Hubble. Peer rated for Highest Level of Professional Excellence.