Insurance & LiensQuestion 1574 of 1605
A lien claimant who has been paid in full but refuses to release a recorded mechanics lien may be liable to the owner for:
a.Nothing; releases are optional
b.Triple the project value automatically
c.Damages, because the claimant must execute and record a release once the claim is satisfied
d.Only the contractor's lost profit
Explanation
Once a lien is satisfied, the claimant must release it. Under the mechanics lien law, a claimant who wrongfully fails or refuses to release a paid lien can be liable to the owner for resulting damages. Prompt release of satisfied liens is required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)