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Can I release a Lien on a Property in Iowa and then re-lien the same Property?

I lien the following job: Primrose Ankeny [29111] 2620 Southwest Vintage Parkway Ankeny, IA 50023 Mechanic Lien # 3796918 on 8/20/2020. The customer has asked us to come back on the job site to do more work, but has asked us to release the mechanics lien prior. I am scared to release the lien because I am worried that I wont be able to file another one after I have released it. Can I release the lien and then file another one?

2 replies

Aug 26, 2020

It is generally not a good idea to release a lien prior to payment. However, it is not uncommon for a lien claimant to get some pressure to release a lien for the promise of some future payment. There is a clear issue between the paying party and the lien claimant in this situation; the paying party wants the lien released before paying, and the lien claimant wants to hold onto the lien until the payment clears. This can throw a wrench in facilitating payment. If the lien is released and no payment is coming, the mechanics lien claimant is likely out of luck. As the claimant, you could still sue for payment, but all of the security gained by filing the lien (causes of action against more than his hiring party, the option to foreclose, etc.) is gone. Once a lien is released, it is likely gone forever. Unfortunately, if a lien is prematurely released on a false promise of an upcoming payment, it is unlikely that the lien can be re-filed. There are several reasons that a released lien cannot be re-filed including: it is likely that the time period in which the lien must be filed has already passed, or if the state requires a notice of intent prior to filing a lien that deadline will pass by the time a lien would be allowed to be filed. Also, most lien release documents have some statement that the lien release is final and the result of payment. It is also often forbidden to re-file a mechanics lien. It is best to file a release only upon payment of the amount owed and if payment is by check, after the check clears.

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Sep 25, 2020

You will be able to refile if you are within the original 90 day window by which to file a lien. But, I'm not sure why you would release the lien. If the homeowner wants you to do more work/finish the work, tell him you need to get paid and you'll do the warranty work. I would advise against releasing the lien until you get paid.

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