Which party is responsible for signing a labor lien release after the completion of a major phase on a home improvement project?

Which party is responsible for signing a labor lien release after the completion of a major phase on a home improvement project?

• A. The owner
• B. The general contractor
• C. Each worker
• D. The subcontractors' union representative

Answer: (C)

Labor lien releases come from the people who filed the liens—the workers who provided labor or the subcontractors who recorded the lien. After a major phase is finished and payment has been made, each lien claimant signs a release to waive their lien rights in exchange for that payment. Because the lien is created by the worker’s or subcontractor’s claim, the release must come from each of those claimants. The owner or general contractor wouldn’t sign a single release for everyone’s lien, and a union representative wouldn’t sign a lien release unless they themselves hold a lien. Signing by every worker who filed a lien clears those specific claims from the property.

Labor lien releases come from the people who filed the liens—the workers who provided labor or the subcontractors who recorded the lien. After a major phase is finished and payment has been made, each lien claimant signs a release to waive their lien rights in exchange for that payment. Because the lien is created by the worker’s or subcontractor’s claim, the release must come from each of those claimants. The owner or general contractor wouldn’t sign a single release for everyone’s lien, and a union representative wouldn’t sign a lien release unless they themselves hold a lien. Signing by every worker who filed a lien clears those specific claims from the property.