When you work with a general contractor, it is common for them to file a lien on your property to ensure that they receive payment for their services. However, once the project is complete and all payments have been made, it is important to obtain a final release of lien from the general contractor. Here`s what you need to know about this document:
What is a Final Release of Lien?
A final release of lien is a legal document that serves as proof that a lien on your property has been fully satisfied. In the case of a general contractor, it means that they have received payment in full for the work that they performed and are no longer claiming any ownership or interest in your property.
Why is it Important to Obtain a Final Release of Lien?
Obtaining a final release of lien is important because it protects you from any future claims of ownership or interest in your property. If you try to sell your property without a final release of lien, the potential buyer may be hesitant to move forward with the transaction until the lien is resolved. Additionally, if the general contractor were to file a lien on your property again in the future, they would not be able to do so for the same work that was covered by the original lien.
How to Obtain a Final Release of Lien?
The general contractor should provide you with a final release of lien once all payments have been made. If they do not, you can request one in writing. The document should include the following information:
– The name and address of the general contractor
– The name and address of the property owner
– A description of the work that was performed
– The total amount that was paid for the work
– A statement that the lien has been fully satisfied and released
Once you receive the document, make sure to keep it in a safe place for future reference. You may need to provide it to potential buyers or lenders if you decide to sell or refinance your property.
In conclusion, obtaining a final release of lien from a general contractor is an important step in protecting your property rights and ensuring that all payments have been made in full. If you have any questions or concerns about this process, consult with a real estate attorney or other qualified professional.