Mechanics' Lien Release

MECHANICS' LIEN RELEASE

State of Arkansas

Governed by Arkansas Code Title 18, Subtitle 4, Chapter 44 (§ 18-44-101 et seq.)

PART 1: FULL RELEASE OF MECHANICS' LIEN

RECORDING REQUESTED BY:

Name: [________________________________]
Address: [________________________________]
City/State/ZIP: [________________________________]

WHEN RECORDED, MAIL TO:

Name: [________________________________]
Address: [________________________________]
City/State/ZIP: [________________________________]

FULL RELEASE AND DISCHARGE OF MECHANICS' LIEN

Pursuant to Ark. Code § 18-44-131

County of Recording: [________________________________], Arkansas
Original Lien Instrument Number: [________________________________]
Date of Original Lien Recording: [__/__/____]
Book: [________] Page: [________]
Circuit Court Clerk: [________________________________] County

PROPERTY INFORMATION:

Legal Description of Property:
[________________________________]
[________________________________]
[________________________________]

Street Address (if applicable): [________________________________]
City: [________________________________], Arkansas [________]
County: [________________________________]

PARTIES:

ORIGINAL LIEN INFORMATION:

RELEASE STATEMENT

CRITICAL NOTICE: Under Ark. Code § 18-44-131, a lien claimant who receives payment must file a release (satisfaction) of the lien in the office of the clerk of the circuit court within ten (10) days of payment. Failure to do so within ten days after receipt of payment shall be prima facie evidence of intent to defraud.

KNOW ALL PERSONS BY THESE PRESENTS:

The undersigned, [________________________________] ("Claimant"), being the holder of that certain mechanics' lien filed on [__/__/____], in Book [________], Page [________], Instrument Number [________________________________], in the Office of the Clerk of the Circuit Court of [________________________________] County, Arkansas, against the real property described above, hereby acknowledges and states as follows:

1. Payment Received. Claimant acknowledges receipt of full payment in the amount of $[________________________________] on [__/__/____] in complete satisfaction of all amounts due and owing under the above-referenced mechanics' lien claim.

2. Full Release and Satisfaction. Claimant hereby unconditionally and irrevocably releases, satisfies, discharges, and cancels the above-referenced mechanics' lien in its entirety, pursuant to Ark. Code § 18-44-131.

3. Timely Filing. This Release is being filed within ten (10) days of receipt of payment as required by Ark. Code § 18-44-131.

4. Authority. The undersigned represents and warrants that he/she/they have full authority to execute this Release on behalf of the Claimant.

5. No Further Claims. Claimant agrees that it shall make no further lien claim against the subject property for the work, labor, or materials described in the original lien.

6. Recording Authorization. Claimant hereby authorizes the Clerk of the Circuit Court of [________________________________] County, Arkansas, to record this Release and note the satisfaction and discharge of the above-referenced mechanics' lien.

EXECUTION

CLAIMANT / RELEASING PARTY:

Signature: ______________________________
Printed Name: [________________________________]
Title (if applicable): [________________________________]
Date: [__/__/____]

If Claimant is an Entity:

Entity Name: [________________________________]
By: ______________________________
Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

NOTARIZATION

STATE OF ARKANSAS
COUNTY OF [________________________________]

On this [____] day of [________________________________], 20[____], before me, the undersigned Notary Public, personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.

WITNESS my hand and official seal.

Notary Public: ______________________________
My Commission Expires: [__/__/____]
[NOTARY SEAL]

PART 2: PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL RELEASE AND DISCHARGE OF MECHANICS' LIEN

County of Recording: [________________________________], Arkansas
Original Lien Instrument Number: [________________________________]
Date of Original Lien Recording: [__/__/____]

The undersigned, [________________________________] ("Claimant"), being the holder of that certain mechanics' lien filed on [__/__/____] in the Circuit Court Clerk's Office of [________________________________] County, Arkansas, for the original amount of $[________________________________], hereby states:

1. Partial Payment Received. Claimant acknowledges receipt of partial payment in the amount of $[________________________________] on [__/__/____].

2. Partial Release. Claimant hereby releases and discharges the above-referenced mechanics' lien to the extent of:

☐ Reduction in Amount. The lien amount is hereby reduced from $[________________________________] to $[________________________________]. The lien remains in full force and effect for the remaining balance of $[________________________________].

☐ Release of Portion of Property. The following portion of the property is hereby released from the lien:
[________________________________]
[________________________________]
The lien remains in full force and effect against the remaining property.

3. Remaining Lien. Except as expressly released herein, the above-referenced mechanics' lien remains in full force and effect, and all enforcement rights are expressly reserved.

4. Ten-Day Requirement. This Partial Release is being filed within ten (10) days of receipt of the partial payment to the extent of the payment received, as required by Ark. Code § 18-44-131.

CLAIMANT / RELEASING PARTY:

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

[NOTARIZATION REQUIRED - Use notary block from Part 1]

PART 3: RELEASE OF LIEN BY SURETY BOND

RELEASE OF MECHANICS' LIEN BY SURETY BOND

County of Recording: [________________________________], Arkansas
Original Lien Instrument Number: [________________________________]

NOTICE OF BOND IN LIEU OF MECHANICS' LIEN

NOTICE IS HEREBY GIVEN that a surety bond has been posted to secure the mechanics' lien described below, and the real property is hereby released from the lien:

BOND REQUIREMENTS UNDER ARKANSAS LAW:

Arkansas law permits the property owner to post a surety bond to release real property from the encumbrance of a mechanics' lien. The bond must be:

• In an amount sufficient to cover the lien claim, plus interest and costs
• Conditioned on payment of any judgment rendered in favor of the lien claimant
• Issued by a surety company authorized to transact business in Arkansas
• Filed with the appropriate circuit court
• Approved by the court

Upon approval of the bond, the lien is transferred from the real property to the bond, and the property is freed from the encumbrance.

CERTIFICATE OF RELEASE BY BOND

This certifies that the mechanics' lien recorded as Instrument Number [________________________________] in [________________________________] County, Arkansas, has been released from the real property by the posting of a surety bond. The lien claimant's rights are preserved against the bond.

Court Order Date: [__/__/____]
Case Number: [________________________________]

Filed by: [________________________________]
Date: [__/__/____]

PART 4: DEMAND FOR RELEASE OF MECHANICS' LIEN

WRITTEN DEMAND TO RELEASE MECHANICS' LIEN

Pursuant to Ark. Code § 18-44-131

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

To: [________________________________] (Lien Claimant)
Address: [________________________________]
City/State/ZIP: [________________________________]

From: [________________________________] (Property Owner/Interested Party)
Address: [________________________________]
City/State/ZIP: [________________________________]

Re: Demand for Release of Mechanics' Lien
Property: [________________________________]
County: [________________________________], Arkansas
Lien Instrument Number: [________________________________]
Date Recorded: [__/__/____]

Dear [________________________________]:

This letter constitutes a formal demand for the immediate release of the above-referenced mechanics' lien.

FACTUAL BASIS FOR DEMAND:

☐ Full Payment Made. The lien claim has been paid in full. Payment in the amount of $[________________________________] was made on [__/__/____] via [________________________________]. Under Ark. Code § 18-44-131, you were required to file a release within ten (10) days of receiving this payment. More than ten days have passed, and no release has been filed.

☐ Lien Enforcement Period Expired. Under Ark. Code § 18-44-119, an action to enforce a mechanics' lien must be commenced within fifteen (15) months from the date the lien was filed. The lien was filed on [__/__/____], and the 15-month enforcement period expired on [__/__/____] without commencement of an action.

☐ The lien is invalid because: [________________________________]

☐ Other: [________________________________]

STATUTORY CONSEQUENCES - ARK. CODE § 18-44-131:

WARNING: Under Arkansas law, it is unlawful for any contractor, subcontractor, or other person who has received payment to fail to discharge a mechanics' lien within ten (10) days after receipt of the payment. The acceptance of payment without having discharged the lien within ten (10) days shall be prima facie evidence of intent to defraud.

Failure to release subjects you to:

• Actual damages suffered by the property owner
• Court costs and attorney fees
• Criminal liability for fraudulent lien (potential felony under Arkansas law)
• Slander of title claims

DEMAND:

You are hereby demanded to execute and file a release of the above-referenced mechanics' lien with the Clerk of the Circuit Court of [________________________________] County, Arkansas, immediately and in no event later than ten (10) days from receipt of this demand.

Sincerely,

Signature: ______________________________
Printed Name: [________________________________]
Date: [__/__/____]

Enclosures:
☐ Copy of original lien filing
☐ Proof of payment (cancelled checks, wire confirmations, receipts)
☐ Recording fee for release document

PART 5: PETITION TO DISCHARGE / RELEASE MECHANICS' LIEN

IN THE CIRCUIT COURT OF [________________________________] COUNTY, ARKANSAS

Case No.: [________________________________]

[________________________________],
Petitioner,

v.

[________________________________],
Respondent.

PETITION TO DISCHARGE AND RELEASE MECHANICS' LIEN

Petitioner [________________________________] ("Petitioner"), by and through undersigned counsel, respectfully petitions this Court for an Order discharging and releasing the mechanics' lien recorded by [________________________________] ("Lien Claimant"), and states as follows:

I. JURISDICTION AND VENUE

1. This Court has jurisdiction over this matter pursuant to Ark. Code § 18-44-101 et seq.
2. Venue is proper in [________________________________] County because the subject property is located therein.

II. BACKGROUND

3. On or about [__/__/____], Lien Claimant filed a mechanics' lien as Instrument Number [________________________________] in the Office of the Clerk of the Circuit Court of [________________________________] County, Arkansas, against real property located at [________________________________] ("Property").

4. The mechanics' lien was filed in the amount of $[________________________________].

III. GROUNDS FOR DISCHARGE

Petitioner seeks discharge of the mechanics' lien on the following grounds:

☐ A. Full Payment and Failure to Release. The amounts claimed under the lien have been paid in full on [__/__/____]. The Lien Claimant has failed to file a release within ten (10) days as required by Ark. Code § 18-44-131, despite written demand.

☐ B. Enforcement Period Expired. Under Ark. Code § 18-44-119, actions to enforce a mechanics' lien must be commenced within fifteen (15) months of filing the lien. The enforcement period expired on [__/__/____].

☐ C. Untimely Lien Filing. The mechanics' lien was not filed within the time required by Ark. Code § 18-44-117:
☐ Not within 120 days after the work was done or materials were furnished
☐ Other timing deficiency: [________________________________]

☐ D. Defective Lien. The lien is defective because: [________________________________]

☐ E. Bond Substitution. Petitioner has posted or is prepared to post a surety bond in an amount sufficient to secure payment of the lien claim.

☐ F. Fraudulent or Overstated Lien. The lien claim is fraudulent or materially overstated because: [________________________________]

IV. RELIEF REQUESTED

WHEREFORE, Petitioner respectfully requests that this Court:

1. Enter an Order discharging and releasing the above-referenced mechanics' lien;
2. Direct the Clerk of the Circuit Court to note the discharge on the records;
3. Award Petitioner actual damages incurred as a result of the failure to release;
4. Award Petitioner reasonable attorney fees and court costs;
5. Grant such other relief as the Court deems just and equitable.

Respectfully submitted,

Signature: ______________________________
Printed Name: [________________________________]
Arkansas Bar No.: [________________________________]
Firm: [________________________________]
Address: [________________________________]
Phone: [________________________________]
Email: [________________________________]

RECORDING INSTRUCTIONS AND INFORMATION

Arkansas Circuit Court Clerk Recording

In Arkansas, mechanics' liens and lien releases are filed with the Clerk of the Circuit Court in the county where the property is located.

Recording Requirements:

• Documents should be on 8.5" x 11" paper
• Legible typewritten or printed text
• Original signatures required
• Notarization recommended for releases
• Include reference to the original lien filing (Instrument Number, Book/Page)
• Recording fees vary by county; check with the specific Circuit Court Clerk

Important: Arkansas has 75 counties, each with its own Circuit Court Clerk's office.

ARKANSAS-SPECIFIC STATUTORY REQUIREMENTS AND PRACTITIONER NOTES

Key Deadlines and Requirements

Practitioner Notes

1. Ten-Day Release Deadline is Critical. Arkansas imposes one of the shortest lien release deadlines in the country. Under Ark. Code § 18-44-131, a claimant who receives payment must file a release within ten (10) days. Failure to do so creates a presumption of intent to defraud - this is not merely a civil penalty but can give rise to criminal liability.

2. Prima Facie Evidence of Fraud. The acceptance of payment without discharging the lien within ten days is prima facie evidence of intent to defraud under Arkansas law. This is an extraordinarily powerful statutory provision that shifts the burden to the lien claimant to prove lack of fraudulent intent.

3. Fifteen-Month Enforcement Period. Under Ark. Code § 18-44-119, a mechanics' lien must be enforced by commencing suit within fifteen (15) months from the date the lien was filed. If no action is commenced within this period, the lien ceases to be effective.

4. 120-Day Filing Window. The lien itself must be filed within 120 days after the work was completed or materials were last furnished. A lien filed outside this window is subject to challenge.

5. Notice to Owner. Under Ark. Code § 18-44-115, certain claimants (subcontractors and material suppliers) must provide notice to the property owner. Failure to provide required notice may affect lien rights.

6. Residential Property Considerations. Arkansas has specific provisions regarding liens on residential property that may impose additional requirements or limitations.

7. Criminal Penalties. Arkansas treats the misuse of mechanics' liens seriously. Filing a fraudulent lien or failing to release a satisfied lien can result in criminal prosecution.

8. Title Insurance. Title companies will require a recorded release before removing a mechanics' lien exception from a title insurance commitment or policy.

SOURCES AND REFERENCES

• Arkansas Code Title 18, Chapter 44: Mechanics' and Materialmen's Liens (§ 18-44-101 et seq.)
• Ark. Code § 18-44-131: Release of lien; penalty for failure to release
• Ark. Code § 18-44-117: Time for filing lien
• Ark. Code § 18-44-119: Enforcement of lien
• Arkansas Judiciary: https://www.arcourts.gov/

This template is provided for informational purposes only by ezel.ai and does not constitute legal advice. Consult a qualified Arkansas attorney before using this form. Laws and recording requirements are subject to change.