Partial Release of Lien Form

The Partial Release of Lien Form is a document created by the claimant to release the lien and confirm the transfer of partial payment for work done. Most often, partial payment for work is used to create long-term projects for which mechanical contractors are hired.

A partial lien release is most often used to reduce the size of bail. That is, partial release of lien does not release from the entire lien, but only from that part of the lien, which is equal to the interim payment for work.

Please note that the release of liability form must be signed and drawn up in the district where the property is located. For the mechanic’s lien form to come into force, it must be signed in the presence of a notary public.

When to Use Partial Release of Lien

Most often, partial release of lien is used when remunerating workers participating in a project. At the same time, the work can be of any kind, but most often, subcontractors’ work is paid in this way, as well as the work of suppliers of materials for construction and creating a project.

Partial release of the lien implies a partial release from the bond, and the decrease in the bond is equal to the amount of remuneration made at this stage of work. Therefore, the creation of this document indicates that the employee will receive another payment (or payments) for this project.

General Steps: What to Consider While Creating Partial Release of Lien

Taking a responsible approach to creating a partial release of lien will help you avoid the potential hassles of paying contractors and material suppliers. Among other things, if all documents are created correctly, they can be used in court if the need arises. Below, you will find the necessary steps to follow when creating a partial release of lien form.

  • Notify the Contractor. Even before starting to create a partial release of lien form, the contractor must be told to create an invoice. In this case, the invoice must describe in detail for what period and how much work the payment was received. It is also worth indicating in the invoice: information about other payments for this project, the rights and obligations of the holder of the lien, and the payee.
  • Make a Partial Payment. Payment must be made through a bank check, and the money must go to the recipient’s bank account first, and only then a partial release from the collateral must be created. If you are paying multiple contractors or subcontractors at once, you can create a joint check to help ensure that everyone involved is paid.
  • Download, Fill, Sign. We remind you that the partial release from bail is a mandatory document. You need to download the form, fill it out correctly (you will find step-by-step instructions in the next part of the text), and also sign the document in the presence of a notary public.
  • Submit the Document to the County Recorder’s Office. Once you complete and sign the document, you must register it with the County Recorder’s Office.
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Download your fillable Partial Release of Lien template in PDF.

Filling Out a Partial Release of Lien Form

To get the best results, we recommend that you use our form-building software. If you have any questions or doubts when filling out a partial release of lien, seek professional legal advice. Below, you will find a step-by-step guide to filling out a partial release of lien.

Specify the Date

The first thing to do when filling out a partial release of lien is to fill in the date, indicating the day, month, and year.

Enter the Contractor’s Name

Enter the contractor’s name under the date.

Enter the Address and Name of the Project

You also need to indicate the project’s name and legal address under the contractor’s name.

Specify Payment Amount

In the next section of the document, you need to repeat the information already entered in the appropriate blanks. After that, indicate the amount of payment by entering it in dollars.

Sign the Document

Sign the document with the notary public present; the document will be considered valid only if you meet this condition.

Published: Jan 18, 2021