Legal Question in Construction Law in California
uNCONDITIONAL LIEN RELEASE
A client is asking for an Unconditional Lien Release prior to making final payment and says we have to give it to him. Is this true?
2 Answers from Attorneys
Re: uNCONDITIONAL LIEN RELEASE
Your client is incorrect. Your client can demand a CONDITIONAL lien release upon final payment. Once the check has cleared, then they can demand an unconditional release.
You can give them an unconditional final release if they handing you a cashier's check at the same time. Otherwise, they get a condition release now and an unconditional release later.
Re: uNCONDITIONAL LIEN RELEASE
Reference Civil Code section 3262(d)(4)[5] ... An unconditional release waives lien rights EVEN IF YOU HAVE NOT BEEN PAID!!! Use CONDITIONAL RELEASE form unless paid in cash or the check has cleared. Be aware that even "cashiers checks" have been known to be forgeries. Best of luck
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