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View On the Beam Remodeling on Houzz

Some of you have probably heard of a lien release, but how many of you have gotten one in the mail?  Although they can look very legal and somehow menacing, in fact they are support for the homeowner in the building and remodel process.

So what exactly is a lien release ?   A lien release is simply a notification that payment has been made to the subcontractor by the General Contractor hired by you to work on your home.

How do we use them?    We often pay our subcontractors partially as the job progresses and they perform a certain percentage of the total scope of work they promised to do.  The lien release is signed by the Subcontractor and indicates that he or she has been paid on a percentage basis.  The signed document literally releases the homeowner from that amount of money, because it has been paid.  We sign and date it also, as your general contractor, and send a copy to you in the mail or hand it to you personally.

What should you do when you get a lien release notification?   Please don’t panic; the lien release is a formality that reflects payment and reassures you as the homeowner that the general contractor is paying his electrician, plumber, roofer, or other type of subcontractor working on your project.  There’s nothing for you to do but read it, save it, and eventually file it away.