MECHANICS' LIEN RELEASE

State of Arizona

Governed by Arizona Revised Statutes Title 33, Chapter 7, Article 6 (A.R.S. § 33-981 et seq.)

PART 1: FULL RELEASE AND SATISFACTION OF MECHANICS' LIEN

RECORDING REQUESTED BY:

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

WHEN RECORDED, MAIL TO:

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

FULL RELEASE AND SATISFACTION OF MECHANICS' LIEN

Pursuant to A.R.S. § 33-1006

County of Recording: [________________________________], Arizona
County Recorder's Instrument/Document Number: [________________________________]
Date of Original Lien Recording: [__/__/____]
Docket: [________] Page: [________] (if applicable)

PROPERTY INFORMATION:

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

Assessor's Parcel Number (APN): [________________________________]
Street Address (if applicable): [________________________________]
City: [________________________________], Arizona [________]
County: [________________________________]

PARTIES:

ORIGINAL LIEN INFORMATION:

RELEASE AND SATISFACTION STATEMENT

IMPORTANT: Under A.R.S. § 33-1006, a lien claimant must issue a release within twenty (20) days after the lien has been satisfied. Failure to do so subjects the claimant to liability for reasonable attorney fees.

KNOW ALL PERSONS BY THESE PRESENTS:

The undersigned, [________________________________] ("Claimant"), being the holder of that certain Notice and Claim of Mechanics' Lien recorded on [__/__/____], as Document Number [________________________________], in the Office of the County Recorder of [________________________________] County, Arizona, 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 Notice and Claim of Mechanics' Lien, including all principal, interest, costs, and any other charges.

2. Full Release and Satisfaction. Claimant hereby unconditionally and irrevocably releases, satisfies, discharges, and cancels the above-referenced Notice and Claim of Mechanics' Lien in its entirety, pursuant to A.R.S. § 33-1006. This release extinguishes all lien rights of Claimant against the subject property arising from the work, labor, materials, equipment, machinery, or professional services described in the original Notice and Claim of Lien.

3. Twenty-Day Compliance. This Release is being issued within twenty (20) days after satisfaction of the lien as required by A.R.S. § 33-1006.

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

5. No Further Claims. Claimant agrees that it shall make no further claim of lien against the subject property for the work, labor, materials, equipment, machinery, or professional services described in the original Notice and Claim of Lien.

6. Recording Authorization. Claimant hereby authorizes the County Recorder of [________________________________] County, Arizona, to record this Full Release and Satisfaction.

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 ARIZONA
COUNTY OF [________________________________]

The foregoing instrument was acknowledged before me this [____] day of [________________________________], 20[____], by [________________________________].

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

PART 2: PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL RELEASE AND SATISFACTION OF MECHANICS' LIEN

County of Recording: [________________________________], Arizona
Original Lien Document Number: [________________________________]
Date of Original Lien Recording: [__/__/____]

The undersigned, [________________________________] ("Claimant"), being the holder of that certain Notice and Claim of Mechanics' Lien recorded on [__/__/____], as Document Number [________________________________], in the Office of the County Recorder of [________________________________] County, Arizona, 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 Notice and Claim of 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 (including APN if applicable):
[________________________________]
[________________________________]
The lien remains in full force and effect against the remaining property.

3. Remaining Lien. Except as expressly released herein, the above-referenced Notice and Claim of Mechanics' Lien remains in full force and effect, and all rights of the Claimant to enforce the remaining lien are expressly reserved.

4. Enforcement Deadline. Claimant acknowledges that under A.R.S. § 33-998(B), a mechanics' lien must be enforced by commencing a foreclosure action within six (6) months after the date of completion or cessation of work.

CLAIMANT / RELEASING PARTY:

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

[NOTARIZATION REQUIRED - Use notary block from Part 1]

PART 3: DISCHARGE OF LIEN BY SURETY BOND

DISCHARGE OF MECHANICS' LIEN BY SUBSTITUTION OF BOND

Pursuant to A.R.S. § 33-1004

County of Recording: [________________________________], Arizona
Original Lien Document Number: [________________________________]

NOTICE OF BOND TO DISCHARGE MECHANICS' LIEN

NOTICE IS HEREBY GIVEN that pursuant to A.R.S. § 33-1004, a surety bond has been filed to discharge the mechanics' lien described below:

BOND REQUIREMENTS UNDER A.R.S. § 33-1004:

Under A.R.S. § 33-1004, a mechanics' lien may be discharged by the property owner or any interested party filing a surety bond with the Superior Court. The bond must meet the following requirements:

• Amount: Equal to one hundred fifty percent (150%) of the demand set forth in the Notice and Claim of Lien
• Condition: Conditioned for payment of any judgment that would have been rendered against the property for enforcement of the lien
• Surety: Issued by a surety company authorized to do business in Arizona
• Court Approval: Filed with and approved by the Superior Court in the county where the property is located

Effect of Bond:
- The lien is discharged from the real property and transferred to the bond
- The property is freed from the encumbrance of the lien
- The lien claimant retains the right to proceed against the bond
- The claimant must commence an action on the bond within the time limitations applicable to the original lien

Limitations on Surety Discharge:
- Under A.R.S. § 33-1004(B), the surety shall be discharged from liability under the bond unless an action is brought against the surety within the time period prescribed by A.R.S. § 33-998

CERTIFICATE OF DISCHARGE BY BOND

This certifies that the Notice and Claim of Mechanics' Lien recorded as Document Number [________________________________] in [________________________________] County, Arizona, has been discharged from the real property by the filing of a surety bond pursuant to A.R.S. § 33-1004.

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

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

PART 4: DEMAND FOR RELEASE OF MECHANICS' LIEN

WRITTEN DEMAND TO RELEASE MECHANICS' LIEN

Pursuant to A.R.S. § 33-1006

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 Pursuant to A.R.S. § 33-1006
Property: [________________________________]
APN: [________________________________]
County: [________________________________], Arizona
County Recorder Document Number: [________________________________]
Date Recorded: [__/__/____]

Dear [________________________________]:

This letter constitutes a formal written demand pursuant to A.R.S. § 33-1006 for the immediate release and satisfaction 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 [________________________________]. The twenty-day period for issuing a release under A.R.S. § 33-1006 has expired.

☐ Lien Enforcement Period Expired. Under A.R.S. § 33-998(B), an action to foreclose a mechanics' lien must be commenced within six (6) months after the date of completion or cessation of work. The lien was recorded on [__/__/____], and the enforcement period expired on [__/__/____].

☐ The lien is invalid because: [________________________________]

☐ Owner-Occupied Dwelling. The subject property is an owner-occupied dwelling. Under A.R.S. § 33-1006(B), you are required to issue a release within twenty (20) days after receipt of this written request and the enclosed recording fee.

☐ Other: [________________________________]

STATUTORY REQUIREMENTS AND PENALTIES - A.R.S. § 33-1006:

Under Arizona law:
- A lien claimant must issue a release within twenty (20) days after the lien has been satisfied
- For owner-occupied dwellings, the release must be issued within twenty (20) days after receipt of a written request and the recording fee
- Failure to timely release subjects you to liability for reasonable attorney fees under A.R.S. § 33-1006(C)
- Additionally, you may be liable for $1,000 in damages plus actual damages for wrongful refusal to release

ENCLOSED:
☐ Recording fee of $[________] for the County Recorder
☐ Proof of payment (if applicable)

DEMAND:

You are hereby demanded to execute and record a release of the above-referenced mechanics' lien within twenty (20) days of receipt of this demand, as required by A.R.S. § 33-1006.

Sincerely,

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

PART 5: PETITION TO DISCHARGE / RELEASE MECHANICS' LIEN

IN THE SUPERIOR COURT OF THE STATE OF ARIZONA

IN AND FOR THE COUNTY OF [________________________________]

Case No.: [________________________________]

[________________________________],
Petitioner,

v.

[________________________________],
Respondent.

PETITION TO DISCHARGE MECHANICS' LIEN

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

I. JURISDICTION AND VENUE

1. This Court has jurisdiction over this matter pursuant to A.R.S. § 33-1004 and A.R.S. § 12-1101 et seq.
2. Venue is proper in [________________________________] County because the subject property is located therein.

II. BACKGROUND

3. On or about [__/__/____], Lien Claimant recorded a Notice and Claim of Mechanics' Lien as Document Number [________________________________] in the Office of the County Recorder of [________________________________] County, Arizona, against real property located at [________________________________], APN [________________________________] ("Property").

4. The Notice and Claim of Lien was recorded 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. Petitioner served a written demand for release pursuant to A.R.S. § 33-1006 on [__/__/____]. More than twenty (20) days have passed and the Lien Claimant has failed to issue a release.

☐ B. Lien Enforcement Period Expired. Under A.R.S. § 33-998(B), an action to foreclose a mechanics' lien must be commenced within six (6) months after completion. The enforcement period expired on [__/__/____].

☐ C. No Preliminary 20-Day Notice. The Lien Claimant failed to serve a Preliminary 20-Day Notice as required by A.R.S. § 33-992.01, rendering the lien invalid.

☐ D. Untimely Recording. The lien was not recorded within the time required by A.R.S. § 33-993.

☐ E. Surety Bond Substitution. Petitioner has posted or is prepared to post a surety bond pursuant to A.R.S. § 33-1004 in the amount of 150% of the lien claim ($[________________________________]).

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

☐ G. Other Deficiency. [________________________________]

IV. ATTORNEY FEES

Petitioner is entitled to recover reasonable attorney fees pursuant to A.R.S. § 33-1006(C) for Lien Claimant's failure to timely release the lien.

V. RELIEF REQUESTED

WHEREFORE, Petitioner respectfully requests that this Court:

1. Enter an Order discharging the above-referenced Notice and Claim of Mechanics' Lien;
2. Direct the County Recorder of [________________________________] County to note the discharge;
3. Award Petitioner reasonable attorney fees and costs pursuant to A.R.S. § 33-1006(C);
4. Award Petitioner $1,000 plus actual damages for wrongful refusal to release;
5. Grant such other relief as the Court deems just and proper.

Respectfully submitted,

Signature: ______________________________
Printed Name: [________________________________]
State Bar of Arizona No.: [________________________________]
Firm: [________________________________]
Address: [________________________________]
Phone: [________________________________]
Email: [________________________________]

RECORDING INSTRUCTIONS AND INFORMATION

Arizona County Recorder Information

In Arizona, mechanics' liens and lien releases are recorded with the County Recorder in the county where the property is located.

Recording Requirements:
- Documents must be on 8.5" x 11" paper (white, unlined)
- Minimum margins: 2-inch top margin on first page; 0.5-inch on all other sides
- Black ink required
- Original or certified copies of signatures
- Notarization required for recordable documents
- Include the County Recorder's Document Number referencing the original lien
- Include Assessor's Parcel Number (APN)
- Recording fees: Check current fee schedule with the County Recorder (approximately $30 for the first page and $3 per additional page, but fees vary by county)

Arizona Counties (15):
Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Maricopa, Mohave, Navajo, Pima, Pinal, Santa Cruz, Yavapai, Yuma

ARIZONA-SPECIFIC STATUTORY REQUIREMENTS AND PRACTITIONER NOTES

Key Deadlines and Requirements

Practitioner Notes

1. Twenty-Day Release Deadline. Under A.R.S. § 33-1006, a lien claimant must issue a release within twenty (20) days after the lien has been satisfied. This is a firm statutory deadline, and failure to comply exposes the claimant to attorney fees liability.

2. Owner-Occupied Dwelling Provisions. For owner-occupied dwellings, A.R.S. § 33-1006(B) provides that the owner may send a written request along with the recording fee, triggering the 20-day release obligation even if the property owner disputes whether the lien has been fully satisfied.

3. $1,000 Plus Actual Damages. Arizona imposes a significant penalty for wrongful failure to release: $1,000 in statutory damages plus actual damages suffered by the property owner. This is in addition to reasonable attorney fees.

4. 150% Bond Requirement. Under A.R.S. § 33-1004, the discharge bond must equal 150% of the lien claim amount. The bond must be filed with the Superior Court in the county where the property is located.

5. Preliminary 20-Day Notice. Most claimants (except those with a direct contract with the owner) must serve a Preliminary 20-Day Notice under A.R.S. § 33-992.01. Failure to serve this notice can invalidate the lien, providing an additional ground for discharge.

6. Six-Month Enforcement Window. The lien must be enforced by filing a foreclosure action within six (6) months after completion or cessation of work. Once this period expires, the lien becomes unenforceable.

7. Registrar of Contractors. Licensed contractors in Arizona are subject to oversight by the Arizona Registrar of Contractors. Filing frivolous or improper liens can result in disciplinary action.

8. Assessor's Parcel Number. Arizona County Recorders typically require the Assessor's Parcel Number (APN) on all recorded documents relating to real property.

9. Stop Notice Alternative. Arizona does not have a "stop notice" procedure. The mechanics' lien is the primary remedy for unpaid construction participants.

10. Title Insurance. Title companies require a recorded release of lien before removing a mechanics' lien as an exception from title insurance. Provide the title company with a certified copy of the recorded release.

SOURCES AND REFERENCES

• Arizona Revised Statutes Title 33, Chapter 7, Article 6: §§ 33-981 through 33-1008
• A.R.S. § 33-1004: Discharge of mechanic's liens; bond; limitations
• A.R.S. § 33-1006: Satisfaction and release of lien
• A.R.S. § 33-992.01: Preliminary twenty day notice
• Arizona Registrar of Contractors: https://roc.az.gov/
• Arizona Superior Court: https://www.azcourts.gov/

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