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ForumsArrowRehabbing and House FlippingArrowWhen to get a lien release?
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When to get a lien release?

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user profile avatar
  • Posts 27
  • Votes 18

Will Kenner
Rental Property Investor from Seattle

posted 18 days ago

Hey BPers, 

I'm nearing the completion of a rehab of a triplex unit and was curious if I should get a lien release when I make the final payment. I've done lien releases before, but they were for large renovations ($175k+) and I was using companies that were specifically a contractor - all work was done by subs. In this latest rehab, the project is slated to come in around $25k and the vast majority of the work has been done by the contractor himself, with subs being used only when required by code (certain electrical work, plumbing, etc) My thought is, asking for a lien release can't hurt, and worst case overkill for such a small project. At the same time though, getting one could prevent significant headache after that last check is cashed and I have knocks at the door / phone calls from workmen. For those who do rehabs/renos/flips, what say you? 

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  • Posts 21K
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Wayne Brooks
Real Estate Professional from West Palm Beach, Florida

replied 18 days ago

State laws vary, but yes you need a Final Release from your GC, simultaneously when issuing the final check.....but that doesn’t protect you from subs/suppliers.  Those you have to get from the subs/suppliers.  Teadyour state statutes, there will be a Notice requirements from subs/suppliers in order for them to legally be able to file a lien.

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  • Posts 27
  • Votes 18

Will Kenner
Rental Property Investor from Seattle

replied 17 days ago

@Wayne Brooks Thanks for the input and recommendations.

After sifting through the RCW's (codes for Washington State) I was able to narrow down all the needed lien information, statutes, and forms for contractor/subcontractor/supplier lien releases through the Labor & Industries website. 

L&I Home -> Licensing & Permits -> Contractors -> Problems with a Contractor 

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