Release of Mechanic’s Liens Certificate Template

A lien certificate is a document indicating that a person owes money to another person and the creditor has the legal rights to get ownership of the property of the debtor in order to collect his debt. The lien certificate is more common in mortgage loan payments and tax returns. When a person doesn’t make his mortgage loan payments or doesn’t pay the tax on his property, a lien certificate is issued by the department in order to seize and take away the property and sell or lease it to collect the outstanding debts and other charges.

Introduction to the Release of Mechanic’s Liens Certificate:

In the same manner as a property tax or mortgage lien certificate works, so does the mechanic’s lien certificate. The mechanic’s lien certificate is mostly referred to as the Mechanic’s lien. In simple words, when a contractor or a subcontractor has done some work on a property, he has to right to put lien on the property if he or his labor hasn’t been paid by the owner of the property. In simple words, if you hire a contractor to work on your property and after the work is completed and you don’t pay the contractor, the contractor has the legal right to put lien on your property and take it away in order to force you to make the payment or else he also has the right to sale or lease the property in order to collect his money.

When there is a lien on a property, a mechanic’s lien certificate is released and provided to the contractor, subcontractor, labor or material provider. It is very interesting to find out that if there are any other types of outstanding payments on the same property, the mechanic’s lien has priority over other creditors because it is in fact the job of the contractor that the property now has more market value because of the construction work done on it.

Key elements to include in the Release of Mechanic’s Liens Certificate:

  • Name of the contractor, subcontractor or Mechanic who is claiming lien on the property
  • Name of the owner of the property with complete address
  • Details of the property i.e. area, location, market value
  • Details of the work the contractor has done on the property i.e. type of work, amount of work and charges for the construction etc
  • Dates when the construction started on the property along with completion date
  • Statement by the contractor, subcontractor or material-man that the owner of the property has in fact denied to pay the charges or he is unable to pay
  • Precise statement by the contractor, subcontractor or material-man in case the property is forfeiture or reclaimed by another person
  • Details of the money that the owner of the property owes to the contractor, subcontractor or Mechanic
  • Validation and expiration of the lien certificate
  • Signature of the commonwealth department clerk and contractor, subcontractor or Mechanic who is claiming lien on the property

Here is preview of a Free Sample Release of Mechanic’s Liens Certificate Template created as fill-able PDF Form,

Release of Mechanic Liens Certificate Template

Here is download link for this Release of Mechanic’s Liens Certificate Template,

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