When using the Mechanics Lien Laws one must be concerned about the method or form they use to “Release their RIGHT to a Lien”. Many states have adopted PROPRIETARY LANGUAGE in the structuring of these forms and have laws which insist that these Proprietary Forms, or at the very least, the incorporation of proprietary language to be inserted into any non standard form.
So the most logical tactic to employ is to use the Release of Lien RIGHTS forms as depicted in the State Statue. When using the Release Forms as illustrated in the State Statute you are most assured to be in full compliance with the laws. Why would you want to do anything else?
Well there are those who participate in the Construction Industry who prefer to work strictly under the guidance of their council even if it means to ignore that which is set forth within the statutes.
Not to imply that any Release of Lien RIGHTS form crafted by an attorney is not compliant with the state statute. However, when additional language is added, you may run the risk of subjecting your company to conditions which have been deliberately eliminated from the language as offered with the Statute. The simple fact is that most who have special release of lien rights forms crafted, usually do so to add layers of protection of their interest or to remove any liability they may be required to accept when using State Statue structured Release of Lien Rights forms.
Here are the states which have published specific language within their lien laws, which apply to the Release of Lien RIGHTS.
- North Carolina
Other States, while not declaring proprietary release of lien rights language or specific forms, will most generally accept the structure of the Release of Lien Rights language as represented in the above list for like situations. The most common are:
- Conditional Progress Release
- Unconditional Progress Release
- Conditional Final Release
- Unconditional Final Release
To be safe, please exercise extreme caution when signing an Unconditional Final Release. This document will declare that you have already been paid everything you earned on the referenced project. If you are still waiting for a check, wire transfer, or voucher, make sure you receive the payment and that the payment is valid before surrendering an Unconditional Final Release.
To avoid any of the confusion, or searching for the specific state release forms. CRM Lien Services offers a comprehensive Construction Notice Management Application for our Open Account clients. The CRM eSystems online service includes all of the specific state release of lien rights forms, including versions with Notary Public endorsement and a complete pallet of generic forms for those states without proprietary language requirements.
To learn more, please use the following link:
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