Maryland Release of Lien - Subcontractor or Material Supplier - Individual
About this form
The Release of Lien - Subcontractor or Material Supplier is a legal document used by individual subcontractors or material suppliers. This form serves to confirm that the contractor or supplier has received full payment for their work or materials provided for property improvements. By signing this form, the subcontractor or material supplier relinquishes any lien rights they may hold against the property, thus protecting the property owner from potential claims regarding past due payments for services rendered or materials supplied.
What’s included in this form
- Date of acknowledgement of payment
- Name of the property owner
- Amount received as payment in full
- Description of work performed or materials supplied
- Property location
- Signature of the subcontractor or material supplier
- Notary public signature and seal
- Certificate of delivery details
When this form is needed
This form should be used when an individual subcontractor or material supplier has completed their contractual obligations and has received full payment for their services or materials. It is important to provide this document to the property owner to clarify that there are no outstanding claims or liens against the property, ensuring that the owner can confidently proceed without the fear of facing a legal lien due to unpaid debts.
Intended users of this form
- Subcontractors who have completed work on a property
- Material suppliers who have provided materials for property improvements
- Property owners seeking to secure a lien-free ownership
- Legal representatives assisting clients in real estate matters
Steps to complete this form
- Fill in the date of receipt of payment.
- Provide the name of the property owner and the amount received.
- Clearly describe the work performed or materials provided.
- Specify the property location for which the services or materials were supplied.
- Sign the document as the subcontractor or material supplier.
- Have the form notarized and complete the certificate of delivery.
Is notarization required?
Notarization is required for this form to take effect. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session, available 24/7.
Mistakes to watch out for
- Failing to include all required information, such as the payment amount or property description.
- Not having the document notarized, if required by local law.
- Submitting the form without ensuring that payment has truly been received in full.
- Overlooking the certificate of delivery, which can lead to disputes regarding the receipt of the release.
Advantages of online completion
- Easy access to legally vetted templates drafted by licensed attorneys.
- Convenient download and use, eliminating the need for in-person visits.
- Edit and personalize the form to meet specific needs before printing.
- Complete the process quickly, ensuring compliance with legal requirements.
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FAQ
When payment issues arise, material suppliers can file mechanics liens. However, there are several rules that are unique to suppliers compared to the more commonly tackled procedures for contractors. When payment issues arise, material suppliers can file mechanics liens to get paid.
In fact, the subcontractor doesn't have any contract with the owner neither written nor verbal!However, presuming that the subcontractor on the project has a written contract with someone, they can still file a lien even if they don't have a written agreement with the property owner.
What Is a Mechanics' (Construction) Lien? When a contractor files a mechanics' (construction) lien on your home, the lien makes your home into what's called security for an outstanding debt, which the contractor claims is due and unpaid for services or materials.
Negotiate with the contractor who placed the lien (the "lienor" to remove it. Obtain a lien bond to discharge the lien, or. File a lawsuit to vacate the lien.
It basically states that you've paid the subcontractor what is owed, they accept the payment in full, and they waive the right to put a lien on your property. Simply present this form to the subcontractor with your payment and ask them to sign it. Make sure you get their signature!
Formalize a defense for disputing the amount of the lien. Gather supporting documentation for your rebuttal, depending on the type of lien. Contact the agent representing the creditor to dispute the amount of the claim. Negotiate a payment settlement with the creditor if you cannot pay the amount you owe in full.
Legally, an unpaid contractor, subcontractor or supplier can file a lien (sometimes called a mechanic's lien) that could eventually force the sale of your home in place of compensation.Conversely, if the contractor who worked on your project does not pay for materials, a supplier could place a lien on your property.
The simplest way to prevent liens and ensure that subcontractors and suppliers are paid is to pay with joint checks. This is when both parties endorse the check. Compare the contractor's materials or labor bill to the schedule of payments in your contract and the Preliminary Notices.