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Updated almost 12 years ago on . Most recent reply

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Karin Crompton
  • Rehabber
  • Niantic, CT
150
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443
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Lien Release for Contractor

Karin Crompton
  • Rehabber
  • Niantic, CT
Posted

I'm wrapping up my first residential rehab and am about to pay the GC the final draw for interior work (we split the rehab into 2 jobs w/2 scopes of work: interior and exterior, primarily b/c of timing issues due to cold weather up here in the northeast and not knowing exactly when exterior would be finished).

Would it be best to have him sign off on a lien release now - at the conclusion of the interior - or after the exterior job and thus, very last payment, has been made to him?

Also, is a lien release form available here on BP? I haven't found one yet.

And finally, I read in some other forum posts here that rehabbers should get lien releases from subs as well. Is this necessary here? I hired someone to act as General Contractor and he hired the subs, not me. I understand anyone can sue anyone, but it seems a bit untenable for me to get all the subs to sign off, especially when some of them finished their portion of the work almost 2 months ago.

Thanks for any insight!

Most Popular Reply

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,508
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

It depends on your state lien laws. Here, a lien release from the GC means Nothing, as far as subs/suppliers being able file a lien. Here, you should get monthly, then final, releases from all subs/suppliers. You need someone familiar with your state's lien laws. Also, release forms are usually have state specific required language.

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