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Conditional Lien Release for the United States

Conditional Lien Release Template for United States

A Conditional Lien Release is a legal document used in the United States construction industry that waives a contractor's or subcontractor's right to file a mechanics lien against a property, contingent upon receipt of specified payment. The document provides protection for both the property owner and the contractor, ensuring that payment and lien rights are properly managed. The specific requirements and format vary by state, with some jurisdictions requiring statutory forms.

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Conditional Lien Release

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What is a Conditional Lien Release?

The Conditional Lien Release serves as a crucial document in construction payment processes across the United States. It is typically used when a contractor or subcontractor is ready to receive payment for completed work but wants to ensure their rights are protected until payment is actually received. The document specifies that the release of lien rights only becomes effective upon receipt of the agreed payment, providing security for both parties. Different states may have specific statutory requirements for Conditional Lien Releases, including mandatory forms and language.

What sections should be included in a Conditional Lien Release?

1. Project Identification: Details of the construction project, including address and description

2. Payment Information: Amount received or to be received, payment period covered

3. Conditional Statement: Statement that the release is conditional upon receipt of payment

4. Scope of Release: Specific rights being released and any reservations

5. Execution: Signature blocks and notary acknowledgment

What sections are optional to include in a Conditional Lien Release?

1. Through-Date Specification: Specific date through which the release applies, used for progress payment releases

2. Exceptions: List of specific claims or rights being reserved, used when certain claims need to be preserved

3. Additional Certifications: Additional statements certifying payment to subcontractors, required by contract or state law

What schedules should be included in a Conditional Lien Release?

1. Schedule A - Payment Details: Detailed breakdown of payment amounts and work covered

2. Schedule B - Project Description: Detailed description of the project and work performed

3. Schedule C - Subcontractor List: List of subcontractors covered by the release (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Release of Lien

Cost

Free to use
Clauses




















Industries

State-Specific Mechanics Lien Laws: Primary state-level legislation governing mechanics liens, including statutory forms, specific deadlines, and notice requirements that vary by state

Uniform Commercial Code (UCC): Article 9 of the UCC governing secured transactions, including provisions for perfection and priority of liens

Construction Law: State and federal construction regulations governing building projects and related contractual obligations

Property Law: Statutes governing real property, including recording requirements and property rights and interests

Contract Law: Basic contract formation requirements, consideration requirements, and enforceability provisions that affect lien releases

State-Specific Release Requirements: State-mandated language, disclaimers, notarization requirements, and recording procedures for lien releases

Federal Laws: Including the Miller Act for federal projects, Little Miller Acts at state level, and federal construction regulations where applicable

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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