Difficulty: Moderately Challenging
Step1
Pay the contractor or subcontractor the amount stated on the mechanics lien if you have no dispute with it. Pay the lien in person if possible with a certified bank check. Prepare a printed statement with "paid in full" written on it, the date and the signature of the lien holder. Have two copies signed and dated; one for you and one for the subcontractor. Prepare a "Release of Lien" form for the subcontractor to sign; make enough copies for you and the subcontractor. Remember that a "Release of Lien" needs to be recorded in the court, so a notary will need to notarize the documents.
Step2
Compile all necessary documents and proof if you plan on disputing the mechanics lien. Include cancelled checks, receipts and paid statements proving you've already paid the contractor or subcontractor. If you used a bank loan to disburse funds during the construction phase, get official bank copies of the disbursements. If you are disputing either unfinished or shoddy workmanship, you will need photographs and a video if possible. Written statements of witnesses or other workers need to be notarized and legible for court records. If you plan to dispute the mechanics lien, it's highly recommended that you hire an attorney to represent you.
Step3
Record a "Petition to Release Lien" if the contractor or subcontractor refuses to sign a "Release of Lien". Fill out the "Petition to Release Lien" form as directed by the court or your state laws. The form is available online for free. After you record the petition with the courthouse, a hearing date will be set by the judge. When you attend the hearing, make sure you have all the proof of payment needed as well as any statements from witnesses. If the judge finds in your favor, the mechanics lien will be removed from the record.
