A lien release (also known as a release of lien, lien cancellation, or cancellation of lien) is the document filed in the county records to release or discharge a mechanic’s and materialmen’s lien (also known as a construction lien or contractor lien) that was filed as a claim on the property title to secure payment for labor and materials provided to improve the real estate.
In Arizona, a lien release, also known as a release of lien or lien cancellation, is a legal document used to remove a previously filed mechanic's or materialmen's lien from the property records. These liens are typically filed by contractors, subcontractors, or suppliers who have not been paid for labor or materials used in improving a property. Under Arizona law, once the owed party receives payment, they are required to file a lien release with the county recorder's office where the property is located. This process is governed by Arizona Revised Statutes, specifically ARS § 33-1004, which mandates that the lienholder must execute and record a release of lien within 20 days after satisfaction of the lien. Failure to timely release a lien can result in penalties, including the potential for the lienholder to be responsible for the attorney's fees and costs incurred by the property owner to have the lien released.