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 Colorado, a lien release, also known as a release of lien or lien cancellation, is used to remove a mechanic's lien from the property records once the debt has been satisfied. Mechanic's liens are used by contractors, subcontractors, and suppliers to ensure payment for labor or materials provided for property improvements. Under Colorado law, once the lienholder has received full payment, they are required to file a lien release with the county recorder's office where the property is located. This release must be filed within ten days after the lien has been satisfied, according to Colorado Revised Statutes § 38-22-131. Failure to timely file a lien release can result in penalties, including potential liability to the property owner for damages. It is important for property owners to obtain a copy of the lien release to ensure that their property title is clear of any encumbrances related to the lien.