If you’re releasing a mechanics’ lien, check the language carefully—because some standard forms could kill your breach of contract claim or other claims.
Many lien release templates include a statement that the underlying claim has been “paid and satisfied.” But here’s the problem: If your claim hasn’t been satisfied, and you are only releasing the lien for a reason unrelated to payment (for example, untimeliness), and you still intend to pursue payment under a breach of contract claim, signing that release could come back to haunt you.
This kind of language can:
- Undermine your breach of contract claims
- Create an estoppel issue if the other side relies on it
- Make an avoidable legal fight much harder to win
California law does not require a lien release to say the claim was satisfied. But bad templates persist, and too many people sign them without thinking.
Before you sign or record a lien release, make sure it doesn’t waive more than you intend. Not sure? Contact one of the lawyers at Tao | Rossini first.