When should a lien release ordinarily be obtained?

When should a lien release ordinarily be obtained?

• A. Before any payment is made.
• B. During design meetings.
• C. After payment is made.
• D. Only if the owner requests it.

Answer: (C)

A lien release is used to remove a mechanics lien once payment has been received, so you typically obtain it after payment to clear the project’s title and prevent future claims. When funds are paid, the party who performed the work or supplied materials should sign an unconditional lien release, confirming they relinquish their lien rights. This protects the owner and the contractor from disputes later on and helps close out the project smoothly. While a conditional release can be used if payment isn’t fully made yet, the ordinary practice is to secure the release after payment has been made. The other options don’t fit because a lien release isn’t issued before payment, it’s not tied to design meetings, and it isn’t required only if the owner asks for it—it's a standard step tied to the payment event.

A lien release is used to remove a mechanics lien once payment has been received, so you typically obtain it after payment to clear the project’s title and prevent future claims. When funds are paid, the party who performed the work or supplied materials should sign an unconditional lien release, confirming they relinquish their lien rights. This protects the owner and the contractor from disputes later on and helps close out the project smoothly. While a conditional release can be used if payment isn’t fully made yet, the ordinary practice is to secure the release after payment has been made. The other options don’t fit because a lien release isn’t issued before payment, it’s not tied to design meetings, and it isn’t required only if the owner asks for it—it's a standard step tied to the payment event.