Mechanics' Lien Release

MECHANICS' LIEN RELEASE

State of Delaware

Governed by Delaware Code, Title 25, Chapter 27 (25 Del. C. § 2701 et seq.)

IMPORTANT NOTE: Delaware mechanics' lien law does not prescribe a general deadline or monetary penalty for releasing a satisfied lien. Section 2729 does, however, provide a statutory court procedure to discharge a filed claim as a lien against the property through a cash deposit or court-approved security. A voluntary written release or satisfaction may also be used where appropriate.

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

County of Recording: [________________________________], Delaware
Original Lien Instrument Number: [________________________________]
Date of Original Lien Filing: [__/__/____]
Book: [________] Page: [________] (if applicable)
Court/Office Where Originally Filed: [________________________________]

PROPERTY INFORMATION:

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

Tax Parcel Number: [________________________________]
Street Address (if applicable): [________________________________]
City: [________________________________], Delaware [________]
County: [________________________________]
(Delaware has three counties: New Castle, Kent, Sussex)

PARTIES:

ORIGINAL LIEN INFORMATION:

RELEASE AND SATISFACTION STATEMENT

KNOW ALL PERSONS BY THESE PRESENTS:

The undersigned, [________________________________] ("Claimant"), being the holder of that certain mechanics' lien (Statement of Claim) filed on [__/__/____], as Instrument Number [________________________________], in the Office of the Recorder of Deeds of [________________________________] County / in the Superior Court of [________________________________] County, Delaware, 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, 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 mechanics' lien in its entirety pursuant to Delaware law (25 Del. C. Ch. 27). This release extinguishes all lien rights of Claimant against the subject property.

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

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

5. Recording Authorization. Claimant hereby authorizes the Recorder of Deeds of [________________________________] County, Delaware, to record this Release and Satisfaction.

6. Contractor License. If this release is being provided with full or final payment on an owner-occupied residence, counsel should review the certification-or-release requirements and license consequence in 25 Del. C. § 2707. That consequence does not create a general post-payment release penalty for every lien claimant.

EXECUTION

CLAIMANT / RELEASING PARTY:

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

If Claimant is an Entity:

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

ACKNOWLEDGMENT

STATE OF DELAWARE
COUNTY OF [________________________________]

BE IT REMEMBERED, that on this [____] day of [________________________________], 20[____], personally came before me, the subscriber, a Notary Public for the State of Delaware, [________________________________], known to me (or proved to me) to be the person described in and who executed the foregoing instrument, and acknowledged that he/she/they signed, sealed, and delivered the same as his/her/their voluntary act and deed.

GIVEN under my hand and seal of office the day and year aforesaid.

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

PART 2: PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL RELEASE AND SATISFACTION OF MECHANICS' LIEN

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

The undersigned, [________________________________] ("Claimant"), being the holder of that certain mechanics' lien filed on [__/__/____], as Instrument Number [________________________________], in [________________________________] County, Delaware, 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:
[________________________________]
[________________________________]
Tax Parcel Number(s): [________________________________]
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 rights of the Claimant to enforce the remaining lien are expressly reserved.

4. Filing Deadline. Claimant acknowledges the applicable enforcement deadlines under Delaware law (25 Del. C. § 2711 et seq.).

CLAIMANT / RELEASING PARTY:

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

[ACKNOWLEDGMENT REQUIRED - Use acknowledgment block from Part 1]

PART 3: DISCHARGE OF LIEN BY CASH DEPOSIT OR SECURITY

PETITION TO DISCHARGE MECHANICS' LIEN UNDER 25 DEL. C. § 2729

Under 25 Del. C. § 2729, an owner or other party in interest may petition to discharge a filed mechanics' lien claim against the property by depositing cash or entering court-approved security in the pending proceedings. The petition must address disputed and undisputed portions as required by subsection (a), and the Court determines the amount and approval of any security.

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

IN AND FOR [________________________________] COUNTY

C.A. No.: [________________________________]

In re: Mechanics' Lien on Property Located at:
[________________________________]
Tax Parcel Number: [________________________________]

[________________________________],
Petitioner (Property Owner),

v.

[________________________________],
Respondent (Lien Claimant).

PETITION FOR DISCHARGE OF MECHANICS' LIEN ON CASH DEPOSIT OR ENTRY OF SECURITY

Petitioner, [________________________________] ("Property Owner / Party in Interest"), respectfully petitions this Court under 25 Del. C. § 2729 for an order discharging the mechanics' lien as a lien against the Property upon the required cash deposit or entry of Court-approved security, and states:

GROUNDS:

1. The Respondent filed a mechanics' lien on [__/__/____] against the Property in the amount of $[________________________________].

2. The lien encumbers the Property and prevents Petitioner from:
   ☐ Selling the Property
   ☐ Refinancing the Property
   ☐ Obtaining clear title
   ☐ Other: [________________________________]

3. The undisputed portion of the claim is $[________________________________] and shall be paid to Claimant before discharge as required by 25 Del. C. § 2729(a). The disputed portion is $[________________________________] for the reasons stated in the attached affidavit.

4. Petitioner proposes to deposit $[________________________________] in cash / enter Court-approved security in the amount of $[________________________________], not less than the amount required by § 2729.

PRAYER FOR RELIEF:

WHEREFORE, Petitioner requests this Court:

1. Accept the required cash deposit or approve the proposed security under 25 Del. C. § 2729;
2. Order the filed claim discharged as a lien against the Property;
3. Grant any further relief concerning the deposit or security authorized by § 2729;
4. Grant such other relief as the Court deems just and proper.

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

PART 4: DEMAND FOR RELEASE OF MECHANICS' LIEN

WRITTEN DEMAND TO RELEASE MECHANICS' LIEN

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: [________________________________], Delaware
Tax Parcel Number: [________________________________]
Lien Instrument Number: [________________________________]
Date Filed: [__/__/____]

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 of $[________________________________] was made on [__/__/____] via [________________________________].

☐ Lien Period Expired. The lien enforcement period under Delaware law has expired. The Statement of Claim was filed on [__/__/____], and the statutory time for enforcement has passed.

☐ Untimely Filing. The lien was not filed within the time period required by 25 Del. C. § 2711:
☐ Not within 180 days after completion for general contractor
☐ Not within the applicable time for subcontractors/suppliers

☐ The lien is invalid because: [________________________________]

☐ Other: [________________________________]

OWNER-OCCUPIED RESIDENCE CAUTION:

For full or final payment by an owner whose property is used solely as the owner's residence, 25 Del. C. § 2707 requires the contractor to provide either the statutory certification of full payment for labor and materials or the described written releases with the contractor's notarized, verified certification. Counsel should determine whether that narrow provision applies here.

ADDITIONAL CONSEQUENCES OF FAILURE TO RELEASE:

• Liability for slander of title
• Actual damages suffered by the property owner (inability to sell, refinance, etc.)
• Attorney fees and court costs if a court petition becomes necessary
• Potential disciplinary action against contractor licenses

DEMAND:

You are hereby demanded to execute and record a full release of the above-referenced mechanics' lien within fifteen (15) days of receipt of this demand.

Sincerely,

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

Enclosures:
☐ Copy of original lien filing
☐ Proof of payment (if applicable)
☐ Draft release document for execution

PART 5: MOTION TO DISCHARGE MECHANICS' LIEN

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

IN AND FOR [________________________________] COUNTY

C.A. No.: [________________________________]

[________________________________],
Plaintiff,

v.

[________________________________],
Defendant.

MOTION TO DISCHARGE AND CANCEL MECHANICS' LIEN

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

I. JURISDICTION AND VENUE

1. This Court has jurisdiction over mechanics' lien matters pursuant to 25 Del. C. Ch. 27, Subchapter II.
2. Venue is proper in [________________________________] County because the subject property is located therein.

II. BACKGROUND

3. On or about [__/__/____], Lien Claimant filed a Statement of Claim as Instrument Number [________________________________] in [________________________________] County, Delaware, against real property located at [________________________________], Tax Parcel [________________________________] ("Property").

4. The Statement of Claim was filed in the amount of $[________________________________].

III. GROUNDS FOR DISCHARGE

Movant 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. The Lien Claimant has failed or refused to execute and record a release.

☐ B. Untimely Filing. The Statement of Claim was not filed within the time required by 25 Del. C. § 2711:
☐ Contractor: not within 180 days after completion of the structure
☐ Subcontractor/supplier: not within applicable time

☐ C. Failure to Enforce. The Lien Claimant has failed to commence an action to enforce the lien within the statutory time period, and the lien is no longer enforceable.

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

☐ E. Cash Deposit or Security Under § 2729. Movant seeks discharge upon the required cash deposit or entry of Court-approved security and has attached the affidavit identifying disputed and undisputed portions of the claim.

IV. RELIEF REQUESTED

WHEREFORE, Movant respectfully requests that this Court:

1. Enter an Order discharging and cancelling the above-referenced mechanics' lien;
2. Direct the Recorder of Deeds of [________________________________] County to note the discharge;
3. Award Movant actual damages incurred;
4. Award Movant reasonable attorney fees and costs;
5. Grant such other relief as the Court deems just and proper.

Respectfully submitted,

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

RECORDING INSTRUCTIONS AND INFORMATION

Delaware Recorder of Deeds Information

Delaware has only three counties, each with its own Recorder of Deeds:

New Castle County Recorder of Deeds
800 N. French Street, 1st Floor
Wilmington, DE 19801
Phone: (302) 395-7700

Kent County Recorder of Deeds
414 Federal Street
Dover, DE 19901
Phone: (302) 744-2315

Sussex County Recorder of Deeds
2 The Circle, P.O. Box 505
Georgetown, DE 19947
Phone: (302) 855-7785

Recording Requirements:

• Documents must be on 8.5" x 11" paper
• Legible typewritten or printed text; black ink
• Original signatures required
• Notarization/acknowledgment required for recordable documents
• Include reference to original lien filing (Instrument Number, Book/Page)
• Include Tax Parcel Number
• Recording fees vary by county; check with the specific Recorder of Deeds
• Prepared by and return to addresses must be included

Mechanics' Lien Filing Location:
In Delaware, mechanics' liens (Statements of Claim) may be filed with the Superior Court prothonotary in the county where the property is located, or with the Recorder of Deeds, depending on the type and the specific procedure followed.

DELAWARE-SPECIFIC STATUTORY REQUIREMENTS AND PRACTITIONER NOTES

Key Deadlines and Requirements

Practitioner Notes

1. No Statutory Release Deadline or Penalty. Unlike many states, Delaware does not have a specific statute requiring a lien claimant to release a mechanics' lien within a set number of days after payment, nor does it prescribe specific monetary penalties for failure to release. The primary remedies are court petition and common law claims.

2. Owner-Occupied Residence Certification or Release. Section 2707 applies when an owner uses the property solely as a residence and makes full or final payment in good faith. Before or simultaneously with payment, the contractor must provide either the statutory notarized certification or the specified lien releases and contractor certification; failure triggers the stated licensing consequence.

3. Cash Deposit or Court-Approved Security. Section 2729 supplies a statutory procedure. A petition must include an affidavit identifying disputed and undisputed portions; the undisputed portion is paid before discharge. Cash equal to the claim may be deposited, or approved security may be entered in an amount the Court approves that is not less than the required cash deposit.

4. Superior Court Jurisdiction. The Superior Court has jurisdiction over mechanics' lien enforcement proceedings in Delaware. This is notable because many states vest this jurisdiction in the circuit or district court.

5. Three-County State. Delaware's simplicity of having only three counties (New Castle, Kent, and Sussex) makes it straightforward to identify the correct recording office.

6. 180-Day Filing Deadline. Contractors must file their Statement of Claim within 180 days after completion of the structure. Different deadlines may apply to subcontractors and material suppliers.

7. First Mortgage Priority. Under 25 Del. C. § 2718, a first mortgage for which at least 50% of the proceeds are used for payment of labor or materials has priority over mechanics' liens. This can affect the practical value of a mechanics' lien.

8. Levari Facias Execution. Under § 2719, execution of judgments in mechanics' lien cases is by writ of levari facias, a somewhat archaic but still effective procedure for judicial sale of the property.

9. Voluntary Release is Standard Practice. Because Delaware lacks a specific statutory release procedure, the standard practice is for the lien claimant to voluntarily execute a release document that is then recorded with the Recorder of Deeds.

10. Title Insurance Considerations. Title companies in Delaware will require a recorded release before removing a mechanics' lien exception. Given the lack of a statutory release procedure, it is important to obtain a properly executed and acknowledged release.

SOURCES AND REFERENCES

• Delaware Code, Title 25, Chapter 27: Mechanics' Liens (§ 2701 et seq.)
• 25 Del. C. § 2702: Persons entitled to obtain lien
• 25 Del. C. § 2706: Waiver of lien
• 25 Del. C. § 2711: Time for filing statement of claim
• 25 Del. C. § 2718: Priority of liens
• 25 Del. C. § 2729: Discharge of lien on payment into Court or entry of security
• Delaware Courts: https://courts.delaware.gov/
• Delaware Division of Professional Regulation: https://dpr.delaware.gov/

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