Mechanics Lien Release (Satisfaction of Mechanic's Lien)

SATISFACTION OF MECHANIC'S LIEN

(Minnesota — Minn. Stat. Chapter 514)

RECORDING REQUESTED BY:
[________________________________]

WHEN RECORDED RETURN TO:
[________________________________]
[________________________________]
[________________________________]
[________________________________]

SPACE ABOVE THIS LINE FOR RECORDER'S USE

SATISFACTION OF MECHANIC'S LIEN

1. Property Type

Select one:

☐ Abstract Property — Record with County Recorder
☐ Registered (Torrens) Property — Record with Registrar of Titles

2. Original Lien Recording Information

3. Property Information

Legal Description:

[________________________________]
[________________________________]
[________________________________]

4. Parties

5. Original Lien Details

6. Release Type

Select one:

☐ FULL UNCONDITIONAL SATISFACTION
The undersigned Claimant hereby certifies that payment of $[________________________________] has been received in full satisfaction of all amounts due under the mechanics lien described above. The indebtedness thereby secured has been fully paid and satisfied, and the undersigned unconditionally releases, satisfies, discharges, and cancels said lien of record.

☐ CONDITIONAL SATISFACTION
Upon receipt by the undersigned of a check from [________________________________] in the sum of $[________________________________] payable to [________________________________], and when said check has been properly endorsed and has been paid by the financial institution upon which it is drawn, this document shall become effective to release, satisfy, discharge, and cancel the mechanics lien described above. This satisfaction is not effective until the check has cleared.

☐ PARTIAL SATISFACTION
Payment of $[________________________________] has been received. This satisfaction applies only to the portion of the lien equal to $[________________________________]. The remaining lien amount of $[________________________________] remains in full force and effect against the Property. The original lien as partially reduced shall continue as a valid and enforceable lien.

☐ SATISFACTION BY EXPIRATION
The time within which the above-described lien may be asserted in an action or other proceeding to enforce the same has expired, and no such action or proceeding has been commenced. Pursuant to Minn. Stat. § 514.76, the undersigned satisfies said lien of record.

7. Satisfaction Statement

The undersigned Claimant, being the holder of the mechanics lien described above, recorded in the office of the County Recorder [or Registrar of Titles] of [________________________________] County, Minnesota, on [__/__/____], as Document Number [________________________________], hereby:

1. CERTIFIES that the indebtedness secured by said mechanics lien has been fully paid and satisfied [or that the conditions described above have been met];

2. RELEASES, SATISFIES, AND DISCHARGES the mechanics lien described above from the Property;

3. RELINQUISHES all right, title, interest, and claim in and to said lien;

4. CONSENTS to the cancellation and discharge of said lien from the official records of [________________________________] County, Minnesota;

5. AUTHORIZES the County Recorder [or Registrar of Titles] to release, cancel, and discharge said mechanics lien of record.

This satisfaction is executed pursuant to Minn. Stat. § 514.76.

8. Claimant Execution — Individual

(Use this section if the Claimant is an individual. For business entities, use Section 9.)

9. Claimant Execution — Business Entity

(Use this section if the Claimant is a business entity. For individuals, use Section 8.)

[________________________________]
(Name of Business Entity)

10. Notary Acknowledgment — Individual

(Required for recording with County Recorder or Registrar of Titles)

State of Minnesota )
) ss.
County of [________________________________] )

This instrument was acknowledged before me on the _____ day of _________________, 20_____, by [________________________________].

________________________________
Notary Public, State of Minnesota
My Commission Expires: _________________________

[NOTARY STAMP/SEAL]

11. Notary Acknowledgment — Business Entity

(Required for recording with County Recorder or Registrar of Titles)

State of Minnesota )
) ss.
County of [________________________________] )

This instrument was acknowledged before me on the _____ day of _________________, 20_____, by [________________________________], the [________________________________] (title) of [________________________________] (entity name), a [________________________________] (type of entity), on behalf of the entity.

________________________________
Notary Public, State of Minnesota
My Commission Expires: _________________________

[NOTARY STAMP/SEAL]

EXHIBIT A — LEGAL DESCRIPTION

(Attach or insert the full legal description of the Property below)

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

Property Identification Number (PID): [________________________________]

IMPORTANT MINNESOTA LEGAL NOTES

Lien Satisfaction vs. Lien Waiver

Statutory Obligation to Satisfy (Minn. Stat. § 514.76)

Every mechanics lien claimed under Chapter 514 shall be satisfied of record, at the expense of the claimant, upon:

• Payment of the amount actually due; or
• Tender of the amount actually due; or
• Written demand made at any time after expiration of the one-year enforcement period (if no action has been commenced)

10-Day Deadline and Penalty

Refusal to cause satisfaction to be entered within 10 days after payment, tender, or demand renders the claimant liable for:

• $25.00 liquidated damages (for real estate liens); plus
• Any further actual damages suffered as a result of the refusal

(Minn. Stat. § 514.76)

Key Deadlines Reference

Recording Requirements

If Claimant Refuses to Satisfy

Property owners have the following remedies:

1. Written Demand: Send written demand to the claimant requiring satisfaction of the lien. The claimant has 10 days to comply (§ 514.76).

2. Damages Action: If the claimant refuses after demand, the owner may bring a civil action for $25 liquidated damages plus any actual damages (§ 514.76).

3. Enforcement Expiration: If no foreclosure action has been filed within 1 year from the date of last furnishing (§ 514.10), the lien is no longer enforceable, and a written demand triggers the 10-day satisfaction obligation.

4. Court Action to Determine Adverse Claims: The property owner may initiate a separate action to remove the lien from title under Minnesota law governing actions to determine adverse claims.

5. Bond/Deposit to Release Property (§ 514.10): The owner may petition the court to release the property from the lien by posting a surety bond or deposit covering the lien amount, interest, probable costs, and attorney's fees.

Minnesota "Unpaid Balance" Rule (§ 514.03)

Subcontractor and supplier liens are limited to the unpaid balance owed by the owner to the general contractor at the time of lien filing. This may affect the amount for which satisfaction is required.

SOURCES AND REFERENCES

• Minnesota Statutes Chapter 514 — Liens Against Property
• Minn. Stat. § 514.76 — Satisfaction; Penalty for Refusal
• Minn. Stat. § 514.08 — Lien Statement; Recording; Contents
• Minn. Stat. § 514.07 — Payments Withheld; Lien Waivers
• Minn. Stat. § 514.10 — Enforcement of Liens
• Minnesota Uniform Conveyancing Forms — Department of Commerce
• Hennepin County — Real Estate Recording Information

This template is provided for informational purposes only and does not constitute legal advice. Each legal matter has unique circumstances. Before using this template, consult with a licensed attorney in Minnesota, verify all statutory citations are current, and confirm filing requirements with the applicable County Recorder or Registrar of Titles. Use of this template does not create an attorney-client relationship.