What is a lien release and when should it be obtained?

What is a lien release and when should it be obtained?

• A. A document from a contractor or supplier releasing lien rights once payment is made.
• B. A permit issued by the city.
• C. A warranty for roofing materials.
• D. A schedule of values for the project.

Answer: (A)

A lien release is a document from a contractor or supplier releasing their right to file a lien against the property once payment is made. It protects the property owner by clearing the title from potential lien claims after the payment is received. You should obtain it when you pay or finalize payment to a contractor or supplier, and keep it with project records. If payment isn’t final yet, a conditional lien release may be used, stating the lien rights are released once the funds clear or the remaining balance is paid. This is the best choice because it directly describes what a lien release is and its purpose. The other options describe a city permit, a warranty, or a schedule of values, which are unrelated to releasing lien rights.

A lien release is a document from a contractor or supplier releasing their right to file a lien against the property once payment is made. It protects the property owner by clearing the title from potential lien claims after the payment is received.

You should obtain it when you pay or finalize payment to a contractor or supplier, and keep it with project records. If payment isn’t final yet, a conditional lien release may be used, stating the lien rights are released once the funds clear or the remaining balance is paid.

This is the best choice because it directly describes what a lien release is and its purpose. The other options describe a city permit, a warranty, or a schedule of values, which are unrelated to releasing lien rights.