Dissolution and Release of Mechanics' Lien - Massachusetts

DISSOLUTION AND RELEASE OF MECHANICS' LIEN

(Massachusetts — MGL Chapter 254)

IMPORTANT: Section 10 permits a lien claimant to dissolve that claimant's lien by filing a signed notice in the registry where the notice of contract was filed. Section 14 separately permits a person in interest to dissolve a lien by recording a qualifying bond. Check the lien type and filing history before using a form below.

FORM 1: FULL RELEASE AND DISSOLUTION OF MECHANICS' LIEN

(After Full Payment)

RELEASE AND DISSOLUTION OF MECHANICS' LIEN

COMMONWEALTH OF MASSACHUSETTS
COUNTY OF [________________________________]

FOR RECORDING IN THE [________________________________] REGISTRY OF DEEDS

Lien Information

Release Declaration

The undersigned Lien Claimant hereby certifies, declares, and states as follows:

1. Full Payment Received. The Claimant has received payment in full in the amount of $[________________________________] in complete satisfaction of all amounts due for labor and/or labor and materials furnished to the above-described property.

2. Lien Dissolved and Released. The mechanics' lien recorded at the above-referenced Book and Page in the [________________________________] County Registry of Deeds is hereby fully dissolved, released, and discharged.

3. Scope. This notice dissolves the Claimant's identified lien. Any separate release of contract claims must be agreed to in a separate instrument.

4. Filing. The Claimant requests filing of this signed notice in the registry where the notice of contract was filed, as provided in § 10.

Claimant Signature

Signed under the pains and penalties of perjury this [____] day of [________________], 20[____].

LIEN CLAIMANT:

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Company: [________________________________]

Acknowledgment

COMMONWEALTH OF MASSACHUSETTS
COUNTY OF [________________________________]

On this [____] day of [________________], 20[____], before me, the undersigned Notary Public, personally appeared [________________________________], proved to me through satisfactory evidence of identification, which was ☐ driver's license ☐ passport ☐ personal knowledge ☐ other: [________________], to be the person whose name is signed on the preceding document, and acknowledged to me that he/she signed it voluntarily for its stated purpose.

Notary Public: ______________________________
Printed Name: [________________________________]
My Commission Expires: [__/__/____]

Partial payment

A partial payment does not itself establish that the recorded lien has been dissolved. Section 10 provides for a signed notice dissolving the claimant's lien so far as that claimant's interest is concerned. For a negotiated reduction that leaves part of a lien in place, obtain Massachusetts counsel's advice on the appropriate recordable instrument and the effect on the underlying claim.

FORM 2: DISSOLUTION OF MECHANICS' LIEN BY TARGET BOND

(MGL c. 254, § 14 — Owner or Interested Person Files Bond to Dissolve Specific Lien)

NOTICE OF RECORDING OF BOND FOR DISSOLUTION OF MECHANICS' LIEN

COMMONWEALTH OF MASSACHUSETTS
COUNTY OF [________________________________]

Lien to Be Dissolved

Bond Information

Pursuant to MGL c. 254, § 14, the undersigned has recorded a bond with the [________________________________] County Registry of Deeds to dissolve the above-referenced mechanics' lien.

Requirements Under § 14

Bond Amount: The bond must be in a penal sum equal to the amount of the lien sought to be dissolved (not double — unlike some states).

Effect of Recording: Upon recording of the qualifying bond, the lien is dissolved. The claimant may enforce the bond by a timely civil action; the bond creates no rights the claimant would not have had in a lien action.

CLAIMANT'S § 14 DEADLINE: A civil action to enforce the bond must begin within 90 days after the later of (a) filing the statement required by § 8 or (b) receiving notice of the bond recording. Determine both dates before calculating the deadline.

Notice to Lien Claimant

Serve this Notice of Recording, together with a copy of the bond, on the Lien Claimant by one of these § 14 methods, then complete the service details:

☐ An officer qualified to serve civil process
☐ Personal delivery to the claimant

90-Day Deadline Calculation

WARNING TO LIEN CLAIMANT: Section 14 requires a civil action to enforce the bond within 90 days after the later date above. Check the separate § 11 lien-enforcement deadline as well.

PERSON FILING BOND:

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

FORM 3: DEMAND FOR DISSOLUTION AND RELEASE OF MECHANICS' LIEN

(Letter Demanding Lien Claimant Release After Payment)

[LETTERHEAD OR SENDER INFORMATION]

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA [☐ Hand Delivery ☐ Email ☐ Facsimile]

[________________________________]
[________________________________]
[________________________________]

RE: DEMAND FOR DISSOLUTION AND RELEASE OF MECHANICS' LIEN

Property: [________________________________]
Registry of Deeds: [________________________________] County
Book/Page: [________________________________]
Date Recorded: [__/__/____]
Lien Amount: $[________________________________]

Dear [________________________________]:

This firm represents [________________________________] ("Owner") in connection with the above-referenced property. We write to demand the immediate dissolution and release of the mechanics' lien you recorded against the property.

GROUNDS FOR DEMAND

☐ Full Payment. The obligation giving rise to your lien has been paid in full. Payment of $[________________________________] was made on [__/__/____]. Accordingly, your lien has been satisfied and must be released.

☐ Failure to Enforce Within 90 Days. You recorded a Statement of Account pursuant to MGL c. 254, § 8, but failed to commence an action to enforce the lien within 90 days after filing the statement, as required by MGL c. 254, § 11. Your lien has therefore been dissolved by operation of law.

☐ Expiration of §§ 2 or 4 Lien. You failed to record a Statement of Account by the earliest applicable § 8 deadline: 90 days after a recorded notice of substantial completion, 120 days after a recorded notice of termination, or 120 days after the last qualifying work or furnishing. The controlling trigger was [________] on [__/__/____]; the deadline was [__/__/____], and no statement was recorded by that date. [For a § 1, 2C, or 2D lien, replace this ground with that lien type's separate § 8 deadline.]

☐ No Valid Lien. Your purported lien is invalid because: [________________________________].

☐ Other: [________________________________].

DEMAND

You are hereby demanded to:

1. Execute and deliver a Release and Dissolution of Mechanics' Lien in recordable form within ten (10) days of receipt of this letter (requested response period, not a statutory deadline);

2. Arrange for filing of the signed notice in the registry where the notice of contract was filed;

3. Provide a copy of the filed notice to the undersigned.

CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand, the Owner will:

1. Consider recording a bond pursuant to MGL c. 254, § 14, to dissolve the lien;
2. Seek a court judgment dissolving the lien when § 15 applies;
3. Pursue other remedies supported by the facts and applicable law.

This demand is made without waiver of any right, claim, or defense.

Very truly yours,

______________________________
[________________________________]
Attorney for [________________________________]
BBO No.: [________________________________]
Address: [________________________________]
Telephone: [________________________________]
Email: [________________________________]

COURT JUDGMENT DISSOLVING LIEN

Section 15 calls for a court judgment dissolving the lien if no person is entitled to it or every lien has been discharged by payment. The clerk then sends a certificate to the register of deeds for recording. A court pleading requires case-specific grounds and procedure; obtain Massachusetts counsel's advice before filing. Section 15 does not itself establish a right to damages or attorney fees for a wrongful lien.

RECORDING INSTRUCTIONS — MASSACHUSETTS

Section 10 directs filing of the claimant's signed dissolution notice in the registry where the notice of contract was filed. Section 14 directs recording of a target bond in the registry for the county or district where the land lies, followed by service of the notice of recording and bond copy on the claimant. Confirm the registry's current document-format and fee requirements before filing.

STATUTORY DEADLINES AND REQUIREMENTS — MASSACHUSETTS

PRACTITIONER NOTES — MASSACHUSETTS

Key Practice Points

1. Calculate Each Deadline Separately. For §§ 2 and 4 liens, § 8 uses the earliest applicable 90-day substantial-completion, 120-day termination, or 120-day last-work trigger for the Statement of Account. Section 11 separately governs the lien-enforcement action period after filing the statement. Section 14 governs a bond action from the later of filing the § 8 statement or receiving notice of bond recording. Identify the lien type and each triggering event before asserting expiration.

2. Two Types of Bonds — Know the Difference.

   • Blanket Bond (§ 12): Recorded before liens attach. Prevents any lien from attaching for work under the bonded contract. Used proactively by owners or GCs.
   • Target Bond (§ 14): Dissolves a specific, already-filed lien. Requires service of notice and bond copy on the claimant. The bond-action period runs from the later of the two statutory events.

3. Bond Amount. Under § 14, the target bond must be in a penal sum equal to the lien amount — not double or 150% as required in some other states.

4. Service of Bond Notice. Notice of the bond recording plus a copy of the bond must be served on the claimant by either (a) an officer qualified to serve civil process, or (b) personal delivery. Certified mail alone may not be sufficient.

5. Statement of Account vs. Notice of Contract. The Statement of Account (§ 8) is the Massachusetts equivalent of a mechanics' lien claim in other states. It must contain specific details including the names of all parties, the amount of the claim, and a description of the property. Filing the Statement of Account is a prerequisite to enforcement.

6. Signature and Acknowledgment. Section 10 calls for the lien claimant's signed notice. Confirm with the registry whether an acknowledgment is required for the particular filing.

7. Professional Services. Section 4 includes professional services under a qualifying subcontract. Confirm the claimant's statutory basis before preparing a dissolution notice.

DISCLAIMER: This template is provided for informational purposes only and does not constitute legal advice. Massachusetts mechanics' lien law has extremely strict deadlines that, if missed, result in permanent loss of lien rights. Consult a Massachusetts-licensed attorney before using any of these forms.

Sources and References:

• MGL c. 254 — Full Chapter
• MGL c. 254, § 10 — Claimant's Notice
• MGL c. 254, § 11 — Enforcement Action
• MGL c. 254, § 14 — Dissolution by Bond
• MGL c. 254, § 15 — Court Judgment