DISCHARGE AND RELEASE OF CONSTRUCTION LIEN

(Michigan — Construction Lien Act, MCL 570.1101 et seq.)

IMPORTANT: Michigan calls these "construction liens" — not "mechanics' liens." The governing statute is the Construction Lien Act (MCL 570.1101-570.1305). Claims of lien are recorded with the Register of Deeds. Discharge by bond requires filing with the County Clerk and then recording a certificate with the Register of Deeds. The bond amount must be twice (2x) the lien amount.

FORM 1: FULL DISCHARGE OF CONSTRUCTION LIEN

(After Full Payment — Recording with Register of Deeds)

DISCHARGE OF CONSTRUCTION LIEN

STATE OF MICHIGAN
COUNTY OF [________________________________]

FOR RECORDING WITH THE REGISTER OF DEEDS, [________________________________] COUNTY

Construction Lien Information

Discharge Declaration

The undersigned Lien Claimant hereby declares and certifies:

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

2. Construction Lien Discharged. The Claim of Lien recorded at Liber [________________________________], Page [________________________________] (or Document No. [________________________________]) in the [________________________________] County Register of Deeds is hereby fully discharged, released, and satisfied.

3. Sworn Statement Compliance. The Claimant has fulfilled all sworn statement requirements under MCL 570.1110.

4. No Further Claim. The Claimant has no further construction lien, claim, or encumbrance against the above-described property arising from the improvement that gave rise to the discharged lien.

5. Lis Pendens. ☐ A Notice of Lis Pendens was recorded in connection with this lien. Recording of this Discharge also operates as a discharge of the Notice of Lis Pendens. ☐ No Notice of Lis Pendens was recorded.

6. Indemnification. The Claimant agrees to indemnify and hold harmless the Owner and Owner's successors and assigns from any loss, cost, or expense arising from any third-party claim related to the improvement covered by the discharged lien.

Claimant Signature

Signed this [____] day of [________________], 20[____].

LIEN CLAIMANT:

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Company: [________________________________]
Michigan License No. (if applicable): [________________________________]

Acknowledgment

STATE OF MICHIGAN
COUNTY OF [________________________________]

On this [____] day of [________________], 20[____], before me, the undersigned Notary Public, personally appeared [________________________________], known to me (or proved to me through satisfactory evidence of identification) to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he/she executed the same for the purposes therein stated.

Notary Public: ______________________________
Printed Name: [________________________________]
County of [________________________________], State of Michigan
My Commission Expires: [__/__/____]
Acting in the County of: [________________________________]

FORM 2: PARTIAL DISCHARGE OF CONSTRUCTION LIEN

(MCL 570.1115 — After Partial Payment)

PARTIAL DISCHARGE OF CONSTRUCTION LIEN

STATE OF MICHIGAN
COUNTY OF [________________________________]

Original Lien Information

Partial Payment and Reduction

Partial Discharge Declaration

1. The Claimant has received partial payment of $[________________________________] toward the obligation secured by the above-referenced Claim of Lien.

2. Pursuant to MCL 570.1115, the Claimant hereby partially discharges the Claim of Lien to the extent of $[________________________________] and reduces the outstanding lien amount to $[________________________________].

3. The Claim of Lien remains in full force and effect as to the remaining balance of $[________________________________].

4. ☐ This partial discharge applies to the following portion of the property:
   Legal Description of Released Portion: [________________________________]
   The lien remains on the following portion: [________________________________]

5. This Partial Discharge does not constitute a waiver of any right or claim not expressly released herein.

LIEN CLAIMANT:

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

ACKNOWLEDGMENT:

(Same form as Form 1 above)

FORM 3: DISCHARGE OF CONSTRUCTION LIEN BY BOND

(MCL 570.1116 — Bond Filed with County Clerk)

IMPORTANT: Michigan requires the bond to be filed with the County Clerk (not Register of Deeds). The bond must be in the penal sum of twice (2x) the claimed lien amount. After the County Clerk approves the bond and issues a certificate, the certificate is recorded with the Register of Deeds to discharge the lien.

PART A: BOND TO DISCHARGE CONSTRUCTION LIEN

BOND TO DISCHARGE CONSTRUCTION LIEN
MCL 570.1116

Filed with the County Clerk, [________________________________] County, Michigan

Bond

KNOW ALL PERSONS BY THESE PRESENTS:

That [________________________________] ("Principal") and [________________________________] ("Surety"), a surety company authorized to transact surety business in the State of Michigan, are held and firmly bound unto [________________________________] ("Obligee"), the lien claimant named in the Claim of Lien described above, in the penal sum of:

$[________________________________]

(Must be TWICE the amount of the lien claim: $[________________________________] x 2 = $[________________________________])

for the payment of which sum, well and truly to be made, the Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally.

Condition

THE CONDITION OF THIS BOND IS: This bond is conditioned upon the payment of any sum for which the Obligee may obtain judgment on the claim for which the Claim of Lien was filed.

If the Principal or Surety shall pay any such sum as determined by judgment of a court of competent jurisdiction, then this obligation shall be void; otherwise it shall remain in full force and effect.

Execution

Signed and sealed this [____] day of [________________], 20[____].

PRINCIPAL:

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

SURETY:

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

(Attach Power of Attorney for surety signatory)

PART B: REQUEST FOR CERTIFICATE FROM COUNTY CLERK

TO THE COUNTY CLERK, [________________________________] COUNTY, MICHIGAN:

Pursuant to MCL 570.1116, the undersigned has filed a bond with this office to discharge the Claim of Lien described above.

Notice to Lien Claimant: The Lien Claimant (Obligee) has been notified of the filing of this bond and has 10 days from notification to file an objection to the sufficiency of the surety.

☐ The 10-day objection period has expired and no objection was filed.
☐ An objection was filed, and the County Clerk has examined the surety and approved the bond.

REQUEST: The undersigned requests that the County Clerk issue a Certificate stating:
1. A good and sufficient bond has been filed in accordance with the Construction Lien Act;
2. The names of the obligor and obligee;
3. The amount of the bond;
4. The description of the property covered by the Claim of Lien being discharged.

PRINCIPAL:

Signature: ______________________________
Date: [__/__/____]

PART C: COUNTY CLERK'S CERTIFICATE

(Issued by County Clerk after bond approval — to be recorded at Register of Deeds)

COUNTY CLERK'S CERTIFICATE
MCL 570.1116

COUNTY OF [________________________________], MICHIGAN

I, [________________________________], County Clerk of [________________________________] County, Michigan, do hereby certify that:

1. A bond has been filed in this office in accordance with the Construction Lien Act, MCL 570.1116;

2. The names of the parties are:
   - Obligor (Principal): [________________________________]
   - Obligee (Lien Claimant): [________________________________]

3. The bond is in the penal sum of: $[________________________________]

4. The bond is conditioned upon payment of any sum for which the Obligee may obtain judgment on the claim for which the Claim of Lien was filed;

5. The property covered by the Claim of Lien being discharged is described as:
   [________________________________]
   [________________________________]

6. The Claim of Lien is recorded in the Register of Deeds for [________________________________] County at Liber [________________________________], Page [________________________________] (or Document No. [________________________________]).

Upon recording this Certificate with the Register of Deeds, the Claim of Lien of the above-named Obligee shall be discharged. If a Notice of Lis Pendens has been recorded, the recording of this Certificate shall also operate as a discharge of the Lis Pendens.

Given under my hand and the seal of the County Clerk this [____] day of [________________], 20[____].

______________________________
County Clerk, [________________________________] County
[SEAL]

FORM 4: DEMAND FOR DISCHARGE OF CONSTRUCTION LIEN

(Letter Demanding Lien Claimant Release After Payment)

[LETTERHEAD OR SENDER INFORMATION]

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[________________________________]
[________________________________]
[________________________________]

RE: DEMAND FOR DISCHARGE OF CONSTRUCTION LIEN

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

Dear [________________________________]:

This firm represents [________________________________] ("Owner"), the owner of the above-referenced property. We write to demand the immediate discharge and release of the construction lien you recorded against the property.

GROUNDS FOR DEMAND

☐ Full Payment. The obligation giving rise to your construction lien has been paid in full. Payment of $[________________________________] was made on [__/__/____]. Your lien has been satisfied.

☐ Failure to Enforce. You failed to commence a foreclosure action within one (1) year after the Claim of Lien was recorded, as required by MCL 570.1117(2). Your Claim of Lien was recorded on [__/__/____], and the one-year enforcement period expired on [__/__/____]. Your lien is void.

☐ Failure to Provide Sworn Statement. You failed to provide a sworn statement as required by MCL 570.1110, which is a prerequisite to maintaining a valid construction lien.

☐ Wrongful Lien. The Claim of Lien was filed without a valid basis because: [________________________________]. Under MCL 570.1121, a person who files or maintains a Claim of Lien that is not a valid construction lien is liable for actual damages, costs, and reasonable attorney fees.

☐ Other Ground: [________________________________].

STATUTORY PENALTIES — MCL 570.1121

Be advised that under MCL 570.1121, a person who intentionally or with reckless disregard includes in a Claim of Lien a greater amount than the sum due, or claims a construction lien on property that is not subject to such a lien, or refuses to discharge a lien that has been satisfied, shall be liable to the owner or lessees for:

• Actual damages;
• Court costs;
• Reasonable attorney fees; and
• A civil penalty of the greater of $1,000 or 10% of the amount wrongfully claimed.

DEMAND

You are demanded to execute and record a Discharge of Construction Lien with the [________________________________] County Register of Deeds within fifteen (15) days of receipt of this letter.

CONSEQUENCES OF NON-COMPLIANCE

Failure to comply will result in:
1. Filing a bond under MCL 570.1116 to discharge the lien at your expense;
2. An action under MCL 570.1121 for actual damages, attorney fees, costs, and the statutory penalty;
3. Pursuit of all available legal remedies.

Very truly yours,

______________________________
[________________________________]
Attorney for [________________________________]
Michigan Bar No. (P[________________________________])
Address: [________________________________]

FORM 5: MOTION TO DISCHARGE CONSTRUCTION LIEN

(Court Filing — Circuit Court)

STATE OF MICHIGAN
IN THE CIRCUIT COURT FOR THE COUNTY OF [________________________________]

CASE NO.: [________________________________]

[________________________________],
Plaintiff / Property Owner,

v.

[________________________________],
Defendant / Lien Claimant.

COMPLAINT TO DISCHARGE CONSTRUCTION LIEN AND FOR DAMAGES

Plaintiff, [________________________________] ("Owner"), by and through counsel, states as follows:

I. PARTIES AND JURISDICTION

1. Plaintiff is the owner of real property located at [________________________________], in the [☐ City ☐ Township] of [________________________________], County of [________________________________], State of Michigan.

2. Defendant is [________________________________], who recorded a Claim of Lien against Plaintiff's property.

3. This Court has jurisdiction over this matter pursuant to MCL 570.1117 and MCL 570.1121.

II. THE CONSTRUCTION LIEN

4. On [__/__/____], Defendant recorded a Claim of Lien with the Register of Deeds for [________________________________] County at Liber [________________________________], Page [________________________________] (or Document No. [________________________________]).

5. The Claim of Lien alleges an amount of $[________________________________] for [________________________________] [describe nature of work/materials].

III. GROUNDS FOR DISCHARGE

6. The construction lien should be discharged because:

☐ a. Full Payment. The obligation has been paid in full. Payment of $[________________________________] was made on [__/__/____]. Defendant refuses to record a discharge.

☐ b. Failure to Foreclose Within One Year. Defendant failed to commence a foreclosure action within one (1) year after recording the Claim of Lien, as required by MCL 570.1117(2). The one-year period expired on [__/__/____].

☐ c. Wrongful Lien (MCL 570.1121). The Claim of Lien was filed without a valid basis because: [________________________________].

☐ d. Excessive Amount. The lien includes a greater amount than the sum due. The actual amount due is $[________________________________].

☐ e. Failure to Comply with Prerequisites. Defendant failed to comply with one or more prerequisites for a valid construction lien: [________________________________].

IV. DAMAGES AND STATUTORY PENALTIES

7. By reason of the wrongfully maintained construction lien, Plaintiff has suffered:

☐ Actual damages: $[________________________________]
☐ Lost sale or refinancing opportunity: $[________________________________]
☐ Attorney fees and court costs: $[________________________________]

8. Under MCL 570.1121, Plaintiff is entitled to:
   - Actual damages;
   - Court costs and reasonable attorney fees; and
   - A statutory penalty of the greater of $1,000 or 10% of the wrongfully claimed amount.

V. PRAYER FOR RELIEF

WHEREFORE, Plaintiff requests:

A. Judgment discharging and releasing the Claim of Lien recorded at Liber [________________________________], Page [________________________________], in the [________________________________] County Register of Deeds;

B. An order directing the Register of Deeds to cancel the Claim of Lien;

C. Actual damages in the amount of $[________________________________];

D. Reasonable attorney fees and court costs;

E. The statutory penalty under MCL 570.1121;

F. Such other and further relief as this Court deems just.

Respectfully submitted,

______________________________
[________________________________]
Attorney for Plaintiff
Michigan Bar No. (P[________________________________])
Address: [________________________________]
Telephone: [________________________________]
Email: [________________________________]

VERIFICATION

I, [________________________________], declare under penalty of perjury that the statements in this Complaint are true and correct to the best of my knowledge, information, and belief.

Signature: ______________________________
Date: [__/__/____]

RECORDING INSTRUCTIONS — MICHIGAN

Where to Record and File

Document Requirements

☐ Original document with original signature(s)
☐ Acknowledgment before a notary public
☐ Reference original Claim of Lien by Liber/Page or Document Number
☐ Include legal description and tax parcel identification number
☐ Property address
☐ Recording fee (contact county Register of Deeds for current fee)
☐ For bonds: attach Power of Attorney for surety signatory

Michigan-Specific Recording Notes

☐ Michigan uses Liber and Page references (some counties have transitioned to Document Numbers)
☐ The Register of Deeds and County Clerk are separate offices
☐ Bonds go to County Clerk; discharges go to Register of Deeds
☐ The County Clerk's Certificate, once recorded at the Register of Deeds, discharges both the Claim of Lien and any recorded Notice of Lis Pendens

STATUTORY DEADLINES AND PENALTIES — MICHIGAN

PRACTITIONER NOTES — MICHIGAN

Key Practice Points

1. "Construction Lien" Not "Mechanics' Lien." Michigan uses the term "construction lien" throughout the statute. Use correct terminology in all filings.

2. Double Bond Requirement. Michigan requires the bond to be twice (2x) the claimed amount — one of the higher bond requirements nationally. For a $50,000 lien, the bond must be $100,000.

3. Two-Office Filing for Bond Discharge. The bond discharge process involves two separate offices: (a) file the bond with the County Clerk, (b) record the Clerk's certificate with the Register of Deeds. Missing either step leaves the discharge incomplete.

4. 10-Day Surety Objection Period. After the lien claimant is notified of the bond, the claimant has 10 days to file an objection to the sufficiency of the surety. If an objection is filed, the County Clerk must examine the surety before approving the bond.

5. Wrongful Lien Penalties — MCL 570.1121. Michigan provides significant penalties for wrongful liens, including a statutory penalty of the greater of $1,000 or 10% of the wrongfully claimed amount, plus actual damages, attorney fees, and costs. This is a powerful tool for owners seeking discharge of invalid liens.

6. One-Year Foreclosure Deadline. A construction lien must be foreclosed within one year of recording. If no foreclosure action is commenced, the lien becomes void. This is distinct from many states that allow longer enforcement periods.

7. Residential Improvements. Different rules apply to residential improvements (owner-occupied single-family dwellings). The lien claimant must provide 20 days' notice to the owner before recording the lien, and the recording deadline is 60 days (vs. 90 days for commercial work).

8. Sworn Statements. Michigan's Construction Lien Act requires detailed sworn statements in connection with payment requests. Failure to provide compliant sworn statements can invalidate the lien.

9. Liber/Page vs. Document Number. Michigan has historically used Liber (book) and Page references for recorded documents. Some counties have modernized to Document Numbers. Verify which system your county uses.

10. Lis Pendens Automatic Discharge. When a County Clerk's certificate is recorded at the Register of Deeds, any Notice of Lis Pendens recorded in connection with the lien is automatically discharged — no separate filing needed.

DISCLAIMER: This template is provided for informational purposes only and does not constitute legal advice. Michigan's Construction Lien Act has specific procedural requirements that must be strictly followed. Consult a Michigan-licensed attorney before using any of these forms.

Sources and References:
- MCL 570.1116 — Discharge by Bond
- MCL 570.1117 — Enforcement by Foreclosure
- Michigan Construction Lien Act — Full Text (PDF)
- How to Bond Off a Construction Lien in Michigan