Mechanics Lien Release (Recorded Lien Cancellation)

RELEASE / SATISFACTION OF CONSTRUCTION LIEN

(North Dakota)

FOR RECORDING WITH THE COUNTY RECORDER
[________________________________] County, North Dakota

PART ONE: FULL RELEASE AND SATISFACTION OF CONSTRUCTION LIEN

1. Original Lien Recording Information

2. Property Information

(If legal description is lengthy, state "See Exhibit A attached hereto and incorporated by reference.")

3. Parties

4. Original Lien Claim Details

5. Release and Satisfaction Statement

The undersigned, [________________________________] ("Claimant"), being the holder of the construction lien described above, recorded in the office of the County Recorder of [________________________________] County, North Dakota, as Document/Instrument No. [________________________________], hereby acknowledges full satisfaction of said lien and releases, cancels, discharges, and relinquishes all right, title, interest, and claim under said lien against the above-described real property and all improvements thereon.

Reason for Release:

☐ Full payment has been received in the amount of $[________________________________], representing complete satisfaction of all sums claimed under the lien.

☐ Settlement and compromise have been reached between the parties, with the Claimant accepting $[________________________________] in full and final satisfaction of all claims.

☐ The underlying claim has been resolved by final judgment entered on [__/__/____] in Case No. [________________________________], in the District Court of [________________________________] County, North Dakota, [________________________________] Judicial District.

☐ The lien enforcement period under NDCC § 35-27-25 has expired without commencement of suit, and the lien is no longer enforceable.

☐ Other: [________________________________]

This release is made pursuant to NDCC § 35-01-27, which requires the holder of a lien upon real property to execute a certificate of discharge and cause satisfaction of record to be entered when the lien-secured indebtedness has been paid and satisfied.

Effective Date of Release: [__/__/____]

The Claimant warrants that no assignment, transfer, or encumbrance of the lien or the underlying claim has been made, and that the Claimant has full authority to execute this release.

The County Recorder of [________________________________] County, North Dakota, is hereby authorized and directed to enter satisfaction of the above-referenced construction lien of record.

6. Claimant Execution

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

If Claimant is an Entity:

Entity Name: [________________________________]

By: ______________________________ Its: [________________________________]

7. Notarization

STATE OF NORTH DAKOTA
County of [________________________________]

On this [____] day of [________________________________], 20[____], before me, the undersigned Notary Public, personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal.

Notary Public: ______________________________

Printed Name: [________________________________]

My Commission Expires: [__/__/____]

(NOTARIAL SEAL)

PART TWO: PARTIAL RELEASE OF CONSTRUCTION LIEN

1. Partial Release Statement

The undersigned, [________________________________] ("Claimant"), being the holder of the construction lien recorded in the office of the County Recorder of [________________________________] County, North Dakota, as Document/Instrument No. [________________________________], on [__/__/____], in the original amount of $[________________________________], hereby partially releases said lien as follows:

Partial Payment Received: $[________________________________]

Remaining Lien Balance: $[________________________________]

Scope of Partial Release:

☐ Reduction in Amount Only. The lien amount is reduced from $[________________________________] to $[________________________________]. The lien continues to encumber all property described in the original lien.

☐ Release of Specific Parcel(s). The following described portion of the property is released from the lien, with the lien continuing against all remaining property described in the original lien:

Released Parcel Legal Description: [________________________________]

Released Parcel Address: [________________________________]

Released Parcel Tax Parcel Number: [________________________________]

☐ Combination. Both a reduction in amount and release of specific parcels as described above.

Remaining Lien. The Claimant expressly reserves all rights under the construction lien as to the unreleased amount of $[________________________________] and any unreleased property. This partial release does not constitute a waiver of any rights, claims, or remedies with respect to the remaining balance.

This partial release is effective as of [__/__/____].

2. Partial Release Execution

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

(Notarization required — use same notarization form as Part One, Section 7.)

PART THREE: DISCHARGE OF CONSTRUCTION LIEN BY UNDERTAKING/BOND

(Pursuant to NDCC Chapter 35-21 — Release of Lien by Undertaking)

1. Application for Discharge by Bond

IN THE DISTRICT COURT OF [________________________________] COUNTY
STATE OF NORTH DAKOTA
[________________________________] JUDICIAL DISTRICT

2. Affidavit of Applicant

(Required under NDCC § 35-21)

I, [________________________________], being the owner of (or having sufficient interest in) the real property described below, state under oath:

1. I am the [☐ owner / ☐ party with sufficient interest] in the real property located at [________________________________], [________________________________] County, North Dakota.

2. A construction lien was recorded against said property by [________________________________] ("Lien Claimant") on [__/__/____], as Document/Instrument No. [________________________________], in the amount of $[________________________________].

3. ☐ I have a defense against collection on the lien, or part thereof, specifically: [________________________________]

4. ☐ There exists a controversy between me and the Lien Claimant as to the validity and/or amount of the lien, specifically: [________________________________]

5. I wish to discharge the construction lien from my property by filing a surety bond/undertaking pursuant to NDCC Chapter 35-21.

IMPORTANT: Under North Dakota law, the bond/undertaking discharge procedure is available only to the property owner or party with sufficient interest — it is not available to contractors.

______________________________
[________________________________], Applicant

Subscribed and sworn to before me on [__/__/____].

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

3. Bond Information

Bond Requirements:

☐ The surety bond is issued by a company authorized to transact business in North Dakota.

☐ The bond identifies the venue, parties, named beneficiary (lien claimant), and lien recording details.

☐ The surety guarantees payment in full of the lien claim and legal costs up to the penal sum of the bond.

☐ The bond amount is sufficient to cover the total lien claim amount plus legal costs.

4. Order of Discharge

(To be entered by the Court)

The Court, having reviewed the application, affidavit, and surety bond filed herein, and being satisfied that the requirements of NDCC Chapter 35-21 have been met, hereby ORDERS:

1. The construction lien recorded as Document/Instrument No. [________________________________] in the office of the County Recorder of [________________________________] County, North Dakota, is DISCHARGED by undertaking.

2. The County Recorder of [________________________________] County is directed to file this Order of Discharge and note the termination of the lien of record.

3. The surety bond shall stand in place of the real property as security for any claim the Lien Claimant may establish.

DATED: [__/__/____]

______________________________
District Judge

PART FOUR: DEMAND FOR RELEASE OF CONSTRUCTION LIEN

(Letter from Property Owner to Lien Claimant)

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

To:
[________________________________]
[________________________________]
[________________________________]

Re: Demand for Release/Satisfaction of Construction Lien
Property: [________________________________]
County: [________________________________], North Dakota
Document/Instrument No.: [________________________________]
Recording Date: [__/__/____]

Dear [________________________________]:

I am the owner (or authorized representative of the owner) of the above-referenced property. A construction lien was recorded against this property by you or your company on [__/__/____] as Document/Instrument No. [________________________________] in the office of the County Recorder of [________________________________] County, North Dakota.

I hereby demand that you release and satisfy this lien for the following reason(s):

☐ Full payment has been made. The total amount of $[________________________________] has been paid in full on [__/__/____], satisfying all obligations underlying the lien claim. Proof of payment is attached hereto as Exhibit [____].

☐ The lien is time-barred. Under NDCC § 35-27-25, a lien claimant must commence suit to enforce the lien within three (3) years of recording. The lien was recorded on [__/__/____], and no suit has been commenced within the statutory period.

☐ The lien was improperly filed. The lien fails to comply with the requirements of NDCC § 35-27-13 because: [________________________________]

☐ Prior notice was deficient. The claimant failed to provide the required 10-day pre-recording notice by certified mail to the property owner as required by NDCC § 35-27-02.

☐ Other: [________________________________]

Statutory Obligations:

Under NDCC § 35-01-27, the holder of a mortgage or other lien upon real property must execute a certificate of discharge and cause satisfaction to be entered within sixty (60) days after the lien is satisfied, or within thirty (30) days of receipt of a written demand from the property owner, whichever is shorter.

Under NDCC § 35-27-25, upon written demand by the property owner, the lien claimant must commence suit within thirty (30) days or the lien is forfeited.

Demand. You are hereby demanded to:

1. Execute a certificate of discharge and record satisfaction of the construction lien with the County Recorder of [________________________________] County, North Dakota, within thirty (30) days of receipt of this demand; OR

2. If you contest this demand, commence a suit to enforce the lien within thirty (30) days of receipt of this demand, as required by NDCC § 35-27-25.

Failure to comply within the statutory period will result in forfeiture of the lien and I will pursue all available legal remedies, including recovery of attorney's fees and costs pursuant to NDCC § 35-27-25.

Sincerely,

______________________________
[________________________________]
[________________________________]
[________________________________]

PART FIVE: PETITION TO DISCHARGE CONSTRUCTION LIEN

(Filed in North Dakota District Court)

Caption

IN THE DISTRICT COURT OF [________________________________] COUNTY
STATE OF NORTH DAKOTA
[________________________________] JUDICIAL DISTRICT

Petition

Petitioner, [________________________________], by and through undersigned counsel, respectfully petitions this Court for an order discharging the construction lien recorded against Petitioner's property and states as follows:

I. PARTIES AND PROPERTY

1. Petitioner is the owner of real property located at [________________________________], in [________________________________] County, North Dakota, legally described as: [________________________________].

2. Respondent, [________________________________], is the party that recorded a construction lien against the Property.

II. THE LIEN

3. On [__/__/____], Respondent caused a construction lien to be recorded in the office of the County Recorder of [________________________________] County, North Dakota, as Document/Instrument No. [________________________________], in the amount of $[________________________________].

4. The lien claims amounts due for: [________________________________].

III. GROUNDS FOR DISCHARGE

5. Petitioner is entitled to discharge of the construction lien on the following grounds:

☐ Full Payment (NDCC § 35-01-27). The indebtedness secured by the lien has been paid and satisfied in full on [__/__/____]. Despite payment, Respondent has failed to execute a certificate of discharge and record satisfaction within the required 60-day period (or 30 days after written demand).

☐ Forfeiture by Failure to Sue After Demand (NDCC § 35-27-25). Petitioner served written demand upon Respondent on [__/__/____] requiring commencement of suit to enforce the lien. More than 30 days have elapsed, and Respondent has failed to commence suit. The lien is therefore forfeited by operation of law.

☐ Expiration of Three-Year Enforcement Period (NDCC § 35-27-25). Respondent failed to commence suit within three (3) years from the date the lien was recorded. The lien was recorded on [__/__/____], and the three-year period expired on [__/__/____].

☐ Defective Lien Filing. The lien fails to comply with the requirements of NDCC § 35-27-13 because: [________________________________].

☐ Deficient Pre-Recording Notice (NDCC § 35-27-02). Respondent failed to provide the required written notice to the property owner by certified mail at least 10 days before recording the lien.

☐ Other: [________________________________]

IV. PRIOR DEMAND

6. On [__/__/____], Petitioner served a written demand upon Respondent via certified mail requiring release of the lien or commencement of enforcement proceedings. A copy of the demand is attached as Exhibit [____].

7. Respondent has failed to release the lien or commence suit within the statutory period.

V. RELIEF REQUESTED

WHEREFORE, Petitioner respectfully requests that this Court:

a. Enter an order declaring the construction lien void, unenforceable, and forfeited;

b. Direct the County Recorder of [________________________________] County, North Dakota, to discharge and cancel the lien of record;

c. Award Petitioner all costs and reasonable attorney's fees incurred in this proceeding, as provided by NDCC § 35-27-25;

d. Award Petitioner damages caused by the wrongful lien; and

e. Grant such other and further relief as the Court deems just and proper.

DATED: [__/__/____]

______________________________
[________________________________]
Attorney for Petitioner
[________________________________]
[________________________________]
North Dakota Bar ID No. [________________________________]

Verification

STATE OF NORTH DAKOTA
County of [________________________________]

I, [________________________________], being first duly sworn, state that I am the Petitioner in the foregoing Petition, that I have read the same, and that the facts stated therein are true and correct to the best of my knowledge, information, and belief.

______________________________
[________________________________]

Subscribed and sworn to before me on [__/__/____].

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

PART SIX: RECORDING INSTRUCTIONS AND STATUTORY REFERENCE

North Dakota Recording Requirements

County Recorder Contact — Major North Dakota Counties

Statutory Deadlines and Penalties — North Dakota

Practitioner Notes — North Dakota

1. 60-Day / 30-Day Satisfaction Deadline. Under NDCC § 35-01-27, the lien holder must execute a certificate of discharge within 60 days after the lien is satisfied, or within 30 days of the owner's written demand, whichever is shorter. This general lien statute applies to construction liens.

2. Owner's Powerful 30-Day Demand. NDCC § 35-27-25 gives property owners a potent tool: a written demand requiring the lien claimant to either commence suit within 30 days or forfeit the lien. This effectively forces the claimant to "put up or shut up" and can accelerate lien resolution significantly.

3. Three-Year Enforcement Period. Unlike many states with shorter enforcement deadlines (e.g., North Carolina's 180 days), North Dakota allows three years from recording to commence enforcement. However, the owner's 30-day demand can drastically shorten this window.

4. Bond Discharge — Owner Only. The bond/undertaking procedure under NDCC Chapter 35-21 is available only to the property owner or a party with sufficient interest — not to contractors. The applicant must submit an affidavit describing ownership, stating a defense or controversy, and expressing a desire to discharge the lien.

5. Pre-Recording Notice Requirement. NDCC § 35-27-02 requires 10-day pre-recording notice to the owner by certified mail. Failure to provide this notice may be grounds for lien invalidity and discharge.

6. Attorney's Fees Recovery. Under NDCC § 35-27-25, an owner who successfully contests lien validity or accuracy may recover "full amount of all costs and reasonable attorney fees incurred." This fee-shifting provision incentivizes prompt release of satisfied liens.

7. No Separate "Lien Release" Form. North Dakota does not prescribe a specific statutory form for lien releases. A satisfaction document following the general requirements of NDCC § 35-01-27 is sufficient, so long as it identifies the lien, states satisfaction, and is properly notarized and recorded.

8. Enforcement Notice Requirements. Before commencing enforcement, the lien claimant must provide personal service notice at least 10 days before, or registered mail notice at least 20 days before (NDCC § 35-27-24). Failure to provide this notice can be raised as a defense.

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice. All construction lien releases should be reviewed by a licensed North Dakota attorney before recording. North Dakota law may change; verify all statutory citations before use.