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Title Company requesting a fully executed original release

CaliforniaLien Releases

I have been contacted by the title company requesting the Original Demand along with a fully executed original release. My questions; What is a fully executed original release? Can I add the cost for the filling, release of the lien, and late fees? Thank you again

3 replies

May 31, 2023

A "fully executed original release" based on the context of your question could be an original signed release of lien rather than a PDF or faxed version.

When you say "add the cost for the filing, release of the lien, and late fees" I assume you are asking if you can make a demand for those amounts. If that's your question, you are free to make a demand for those costs. The cost of recording a lien and recording a release of lien are legitimate costs that are reasonable to request. Whether you're entitled to late fees depends upon your contract or your rights under the prompt payment statutes. Note that after you provide a release of lien, you probably wont' have much leverage to demand additional costs or late fees.

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May 31, 2023

The Title company is going to want a package from you that includes:

1. A demand for payment itemizing the demand and instructing escrow that they can record your release of lien provided that they issue you payment on the demand amount in full. 

2. the original, notarized release of lien.

You can include in your demand the cost to record the lien and interest at 10%. If your contract calls for additional cost you can generally include those as well. 

Be sure that escrow will close within 90 days of recording your lien. If not, you will need to either get a notarized lien extension from the owner recorded or file a lawsuit to foreclose to ensure your lien does not expire. If you must file a lawsuit generally you can add the costs to do so to the demand amount. So you will want to do so before sending your demand if this is necessary.

 

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Jun 6, 2023
It sounds like the property is being sold. It’s customary for the title company in this situation to ask for you to send them a letter saying how much money is owed, including costs and interest, as well as an original signed Release of Mechanic’s Lien in recordable form (wet copy). That’s what “fully executed original release” means. Make sure you let the title company know in your cover letter that you are sending them the release in trust, and they’re not authorized to record it until they send you a check for the full amount of your claim. I’m happy to answer any questions you have about this.
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