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How to receive payment after a lien has been filed?

New YorkJoint ChecksLien WaiversMechanics Lien

We are in a bit of a tricky situation with our first filed lien. Our client is now asking us to sign lien waivers and split 3rd party payment agreements that specifically are stating that no liens have been placed to our knowledge, but there have been and they know this. The only alternative suggestion they stated is for us to remove the lien, have it signed by a county clerk in order for us to get paid. They are stating that they won't pay until its removed or the paperwork is signed and that IF something happens we should just refile a new lien.

12 replies

Apr 20, 2021
This is a complicated question. First, the demand that the lien be released before payment is not consistent with customary practice. Typically, a bank check is exchanged for a lien release. Second, the claim that you can refile the lien depends on timing, as in when the 8 month mark after you last worked at the site passes. This has a bad feel to it, like the contractor is hoping to get rid of your lien for one payment and leave you with no recourse for the balance, except to sue. You may want to retain an attorney for the purpose of negotiating this matter for you, there are ways to deal with this in a settlement agreement, with penalties, and attorney fees for breaches and using escrow funds and agreements. Good luck
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Apr 20, 2021

Thank you Carol, would a Conditional Waiver and release on Final Payment apply? 

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Apr 20, 2021
it is not going to be sufficient on the facts as you outlined them. You need to retain a lawyer to help you with this deal.
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