North Carolina Release of Lien

• Category: Oil Gas and Minerals - Releases
• State: Multi-State
• Control #: US-OG-542
• Format: Word; Rich Text

Description

This form is a release of a lien. The form provides that the lienholder chooses to release a certain parcel of property and the owner from all liability arising from the labor performed and materials furnished by the lienholder. A North Carolina Release of Lien is a legal document that serves to acknowledge the satisfaction of a debt or obligation related to a property. When a lien is filed against a property, it places a claim on the property's title, preventing it from being sold or refinanced without the lien being addressed. By filing a Release of Lien, the lien holder acknowledges that the debt has been paid in full, thus releasing their claim on the property. This document is important as it clears the property's title, giving the owner the ability to transfer ownership or apply for new financing. The release also provides proof to potential buyers or lenders that the property is free from encumbrances. In North Carolina, there are primarily two types of Release of Lien: 1. Conditional Waiver and Release Upon Final Payment: This type of release is often used in situations where progress payments are made throughout a project. It signifies that the lien holder waives their rights to file a lien for the specific amount claimed upon receipt of payment. However, this type of release is conditional upon the actual receipt of payment and does not release the lien rights entirely until the final payment is made. 2. Unconditional Waiver and Release Upon Final Payment: This release type is used when full payment has been received, and the lien holder no longer has any claim or lien rights on the property. It provides an unconditional waiver of all lien rights upon the final payment being made. In addition to these types of releases, it's important to note that a North Carolina Release of Lien should contain relevant information such as the property owner's name, address, and contact details, contractor/subcontractor information if applicable, a detailed description of the property, the original recording information of the filed lien, and the amount of the lien being released. It is crucial to ensure that the Release of Lien is properly executed, notarized, and recorded with the appropriate county office where the original lien was filed. Failing to do so may result in complications when attempting to transfer the property's ownership or obtain financing in the future. In conclusion, a North Carolina Release of Lien is a vital legal document that releases the claim or encumbrance on a property's title by acknowledging the satisfaction of a debt. By understanding the different types of releases and their significance in the lien release process, property owners and lenders can ensure a smooth transaction and maintain a clear title history.

A North Carolina Release of Lien is a legal document that serves to acknowledge the satisfaction of a debt or obligation related to a property. When a lien is filed against a property, it places a claim on the property's title, preventing it from being sold or refinanced without the lien being addressed. By filing a Release of Lien, the lien holder acknowledges that the debt has been paid in full, thus releasing their claim on the property. This document is important as it clears the property's title, giving the owner the ability to transfer ownership or apply for new financing. The release also provides proof to potential buyers or lenders that the property is free from encumbrances. In North Carolina, there are primarily two types of Release of Lien: 1. Conditional Waiver and Release Upon Final Payment: This type of release is often used in situations where progress payments are made throughout a project. It signifies that the lien holder waives their rights to file a lien for the specific amount claimed upon receipt of payment. However, this type of release is conditional upon the actual receipt of payment and does not release the lien rights entirely until the final payment is made. 2. Unconditional Waiver and Release Upon Final Payment: This release type is used when full payment has been received, and the lien holder no longer has any claim or lien rights on the property. It provides an unconditional waiver of all lien rights upon the final payment being made. In addition to these types of releases, it's important to note that a North Carolina Release of Lien should contain relevant information such as the property owner's name, address, and contact details, contractor/subcontractor information if applicable, a detailed description of the property, the original recording information of the filed lien, and the amount of the lien being released. It is crucial to ensure that the Release of Lien is properly executed, notarized, and recorded with the appropriate county office where the original lien was filed. Failing to do so may result in complications when attempting to transfer the property's ownership or obtain financing in the future. In conclusion, a North Carolina Release of Lien is a vital legal document that releases the claim or encumbrance on a property's title by acknowledging the satisfaction of a debt. By understanding the different types of releases and their significance in the lien release process, property owners and lenders can ensure a smooth transaction and maintain a clear title history.