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 Indiana, 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 lien from the property records. Mechanic's liens are used by contractors, subcontractors, and suppliers to ensure payment for labor or materials provided for property improvements. Once the debt is paid or otherwise satisfied, the lienholder is required to file a lien release with the county recorder's office where the property is located. Indiana Code Title 32, Article 28 governs the mechanic's lien process, including the release of such liens. Failure to timely release a lien after it has been satisfied can result in penalties for the lienholder. It is important for property owners to obtain a lien release after settling the debt to clear the title and avoid complications in future transactions involving the property.