Home owner is wanting to pay off lien with refinancing loan. Title company has sent me a private lien payoff form. Then they say they can release the funds to me. I am wondering if this is a legitimate way of paying?
It's common for owners to request payment of a lien be made via regular installments or some other alternative payment schedule. And, when that's the path taken to repayment, there should generally be some written document involved showing the formal agreement.
With that being said, if your customer or their title company has drawn up paperwork and promised you to pay, it's probably a good idea to consult a local construction lawyer before signing. It's possible that they could get you to waive or release your lien with just a promise in hand, then fail to uphold their end of the bargain. So, having someone in your corner to make sure the deal is good for you, too, is probably worthwhile.
For help finding a CO construction lawyer: Top Colorado Construction Lawyers. For discussions on signing a lien release in exchange for payment, these articles should have some good information: (1) Creative Options To Secure A Party’s Promise To Pay; and (2) Construction Lien Release Process: the Timeline is Tricky.