Delaware Full Lien Release

In Delaware, liens that have been paid off or satisfied for any reason should be properly discharged by filing a lien release in the country registry of deeds or prothonotary office in the county where the lien was originally recorded. Delaware law requires a lienholder to release the lien when the underlying obligation has been paid in full.

No lien shall be obtained upon the lands, structure, or both, of any owner which is used solely as a residence of said owner when the owner has made either full or final payment to the contractor, in good faith, with whom he contracted for the construction, erection, building, improvement, alteration or repair thereof. 25 DEL. LAWS, C. 27, 2707.

Prior to or simultaneous with the receipt of any full or final payment by the contractor, the contractor must provide the owner either: (1)A notarized, verified written certification that the contractor has paid in full for all labor performed and materials furnished to the date of such full or final payment in or for such construction, erection, building, improvement, alteration or repair or (2)A written release of mechanics' liens signed by all persons who would otherwise be entitled to a lien, containing a notarized, verified certification signed by the contractor that all of the persons signing the release constitute all of the persons who have furnished materials and performed labor in and for the construction, erection, building, improvement, alteration and repair to the date of the release and who would be entitled otherwise to file mechanics' liens claims. Id.

Failure of the contractor to provide the owner a written certification or a release of mechanics' liens at such time shall constitute sufficient cause for the immediate suspension, revocation or cancellation of the contractor's occupational and business licenses. Id. If the owner has not made full payment in good faith to such contractor, the lien may be obtained in, but it shall be a lien only to the extent of the balance of the payment due such contractor, which balance or portion shall be payable pro rata among the claimants who perfect liens. Id. Payments made to the contractor by the owner after service of process, shall not be deemed to be "in good faith." Id.

The Full Release document contains the following: 1) name and address of the lien claimant; 2) name and address of the property owner or person contracted with for the work of improvement; 3) address of the property subject to the release; 4) a legal description; 5) the necessary information used to locate the lien in the public record including the date of recording, office of recording, book, and page number; and 6) the payment amount. The Release should be signed before a notary public who then validates the signing with his or her signature or seal. Space is also provided for a witness to sign his or her name as well. Record the completed release at the same prothonotary office where the lien was recorded.

This article is provided for informational purposes only and is not legal advice. Please speak with a licensed attorney for assistance with releasing a lien or with questions about Delaware mechanic's lien laws.

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