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Certificate of Satisfaction of Mechanic's or Construction Lien

State:
Multi-State
Control #:
US-01032BG
Format:
Word; 
Rich Text
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Description

A mechanic's (or construction) lien is a claim created by statute to secure priority of payment for labor performed or materials furnished in the making of improvements on real property. A mechanic's lien attaches to the land as well as improvements on the land. Mechanics' liens are purely statutory in origin, and a mechanic's lien may not exist unless it is expressly created by the terms of a statute. This form is a sample of a certificate of a lienholder that the debt secured by the release has been paid and stating that the lien should be marked discharged in the appropriate land records.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

Definition and meaning

The Certificate of Satisfaction of Mechanic's or Construction Lien is a legal document used to confirm that a debt related to construction work or supplies has been fully paid. This certificate effectively releases the lien that was initially filed against a property, ensuring that the property is free of any encumbrances associated with unpaid construction costs.

Once the certificate is filed, it serves as proof to all parties involved that the obligations tied to the mechanic's lien have been satisfied. This document protects the property owner from future claims related to the same debt.

How to complete a form

Filling out the Certificate of Satisfaction of Mechanic's or Construction Lien involves several key steps:

  1. Enter the date when the certificate is being filed.
  2. Provide the name of the corporation or individual that filed the original lien.
  3. Include the state where the lien was recorded and the corresponding county office details.
  4. State the legal description of the property pertaining to the lien.
  5. Document the date when the debt was fully paid.
  6. Have the authorized representative sign the document and affix the corporate seal if applicable.
  7. Submit the completed form to the appropriate county office for recording.

Who should use this form

The Certificate of Satisfaction of Mechanic's or Construction Lien should be used by:

  • Property owners who have settled all debts related to construction work on their property.
  • Contractors or subcontractors who have been paid for their labor or materials and wish to release the lien they filed.
  • Commercial entities involved in property development who need to ensure clear titles for real estate transactions.

Key components of the form

Essential elements of the Certificate of Satisfaction of Mechanic's or Construction Lien include:

  • The identity of the property owner and the contractor.
  • Details of the original lien, including the date it was filed and the county where it was recorded.
  • A clear statement confirming the payment of the debt.
  • A signature from an authorized representative of the contractor or claimant.
  • Date of execution.

Common mistakes to avoid when using this form

When completing the Certificate of Satisfaction of Mechanic's or Construction Lien, be wary of these common errors:

  • Failing to provide the complete legal description of the property.
  • Not signing the document or missing the requisite signatures.
  • Incorrectly entering the date on which the debt was satisfied.
  • Submitting the form to the wrong county office for recording.

What documents you may need alongside this one

To successfully submit the Certificate of Satisfaction of Mechanic's or Construction Lien, you may also need:

  • Proof of payment or settlement of the debt associated with the lien.
  • The original mechanic's lien document for reference.
  • Identification or authorization documents for the individual signing on behalf of the corporation.

State-specific requirements

Each state may have differing requirements regarding the Certificate of Satisfaction of Mechanic's or Construction Lien. Ensure to check:

  • The specific formatting required for the form.
  • Any additional information or attachments that must accompany the filing.
  • Applicable state statutes or regulations regarding lien satisfaction and discharge.
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FAQ

A Satisfaction of Mortgage, also known as a Mortgage Lien Release, is a legal document provided by the mortgagee (financial institution) advising that the mortgage has been paid in full, all terms of the loan have been satisfied and there will no longer be a lien on the property.

Get free mechanics lien form A construction mechanics lien is claimed against real estate property, and the lien must be filed in the appropriate office in order to be valid.Additionally, construction liens have strict timing and notice requirements. Machinery mechanics liens are possessory liens.

Mechanic's lien: A mechanic's lien is a lien placed on your property for nonpayment for work you had done on the property.A lis pendens isn't a lien but instead is a notice of a potential future lien. It's recorded in the public records to give notice to future buyers of the real estate.

Mechanic's liens are legal documents that essentially reserve the rights of the filer to seek unpaid compensation. They are usually filed by contractors, subcontractors, or suppliers that never received payment for work that they performed or materials that they provided on the property.

The most common way to reduce or even eliminate mechanic's lien risk is through the use of lien waivers. A lien waiver is a private agreement in which a party surrenders the right to file a lien in exchange for payment.

A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt.A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien.

A mechanic's lien is a guarantee of payment to builders, contractors, and construction firms that build or repair structures. Mechanic's liens also extend to suppliers of materials and subcontractors and cover building repairs as well.

The process of bonding off a mechanics lien starts after a claimant has filed a mechanics lien. After the claim is made, a general contractor or a property owner can contact a surety bond company to purchase a surety bond that replaces the value of the lien that was filed against the property.

A construction lien is a claim made against a property by a contractor or subcontractor who has not been paid for work done on that property. Construction liens are designed to protect professionals from the risk of not being paid for services rendered.

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Certificate of Satisfaction of Mechanic's or Construction Lien