In the mechanics lien process, a lien release (also known as a release of lien or a cancellation of lien) is a document that is usually voluntarily filed by a lien claimant, such as a subcontractor, in exchange for payment or a promise of payment from a general contractor or a property owner. Therefore releasing a lien is a delicate process, because lien claimants generally want to be paid before they release the lien, and the liened party wants the lien released before they make payment. Unlike a lien waiver which negates the right to file a lien in the future, a lien release cancels a lien that has already been placed.
Even though they are common in the construction industry, lien releases are important legal contracts. It is important to read lien release documents carefully and it is a good practice to consult with legal counsel before signing.