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The document is a legal form for a Waiver and Release of Lien by Claimant, which allows an individual or entity to waive their construction lien rights against a property after being fully paid for services rendered. It includes sections for personal information, acknowledgment by a notary public, and certification of delivery.

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What does a release of a lien mean?

A lien is a claim on property to ensure payment of a debt. When you borrow money to purchase a car, the lender files a lien on the vehicle with the state to insure that if the loan defaults, the lender can take the car. When the debt is fully repaid, a release of the lien is provided by the lender.

What is the difference between a lien release and a lien withdrawal?

A lien is released when the tax debt has been satisfied. A lien withdrawal removes the effects of a publicly recorded Notice of Federal Tax Lien (NFTL) when taxes are still owed.

How do I get a lien waiver?

An unconditional lien waiver on final payment is given when a contractor or subcontractor receives the final payment, and they waive their lien rights immediately without any conditions. For example, a flooring contractor may provide an unconditional lien waiver on final payment once all flooring is installed.

How do you release a mechanics lien in Texas?

Under Section 53.171(c) of the Texas Property Code, a mechanics lien can be discharged with a bond even after the dispute has arisen and the lien has been filed. The bond must be substantially higher than the lien amounts.

How does a mechanics lien work in Texas?

Mechanics liens are a type of construction liens that help secure payment for labor or materials provided. When properly filed, the mechanics lien shows up as a debt on the propertys title and motivates its owner to get you paid.

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What is required for a lien waiver in Texas?

In Texas, lien waivers must follow the statutory forms in the Texas Property Code. Specifically, Section 53.281 of the Texas Property Code outlines the necessary components for a valid lien waiver. Any lien waiver has to be precise in language. It also needs to be formatted correctly to be considered legal.

Is a lien release the same as a lien waiver?

Any time a subcontractor or supplier submits a payment application, a lien waiver is usually nearby. A lien release has no specific time frame. They may be necessary during the project or even after its completion. However, they will only come into play after filing a mechanics lien against the property.

What is a lien release form for?

A Lien Release Form is a legal document that removes a previously filed lien on a property. This form is typically used after a lien claimant, such as a contractor, subcontractor, or supplier, has received payment in full for their work or materials, thereby releasing the property from the lien claim.

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