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There are a lot of document names and jargon involved in construction payments and as a result documents like lien waivers and lien releases can get mixed up Since we know that lien waivers are like receipts-- and used when payments are exchanged -- we can think of them as transactional documents that help avoid liens A lien RELEASE however would be needed ONLY if a lien has already been filed on a property Lien releases go by different names likelier cancellation and do exactly what they sound like they would, They remove the mechanics lien from a property You should not release a lien until the payment has been made or the payment dispute is settled Mechanics liens are the best way to make sure you're paid when a dispute takes place so releasing a lien early could be a huge mistake Lien releases also need to be filed with the county recorder's office where the lien was filed in order to remove the lien from the property Generally this is pretty simple but like most construction payment topics there are some corners cases Some state statutes use the word release in reference to the release of different rights sort of like a waiver rather than the cancellation of a recorded document The key to understanding the difference is keeping things in context If someone is asking for a lien release while project is happening they are most likely looking for a lien waiver If you have filed a lien and have since been paid for the lined work — you're probably looking for a lien release or lien cancellation In the majority of cases if you're using waivers and notice documents correctly you can typically avoid liens & lien-releasesall together In summary Waivers act like a receipt for payment during the project and a lien Release is used to remove a mechanics lien if one was filed I hope this helped you understand the difference between waivers and releasesLevelset is here to help you with lien waivers Visit levelsetcom to learn more about lien waivers or to send & request lien waiver through our easy-to-use platform And remember payment help is here
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