Mechanics Lien Release

MECHANICS' LIEN RELEASE

State of South Dakota

Pursuant to SDCL Chapter 44-9

TABLE OF CONTENTS

1. Full Release of Mechanics' Lien
2. Partial Release of Mechanics' Lien
3. Release by Surety Bond
4. Demand for Release of Mechanics' Lien
5. Petition to Discharge Mechanics' Lien
6. Recording Instructions
7. Statutory Reference Table
8. Practitioner Notes

1. FULL RELEASE OF MECHANICS' LIEN

SATISFACTION AND RELEASE OF MECHANICS' LIEN
Pursuant to SDCL 44-9-21

Recording Requested By:
[________________________________]

When Recorded, Return To:
[________________________________]
[________________________________]
[________________________________]

STATE OF SOUTH DAKOTA
COUNTY OF [________________________________]

KNOW ALL PERSONS BY THESE PRESENTS:

Lien Claimant Information:

Property Owner Information:

Property Description:

Original Lien Information:

Satisfaction and Release Declaration:

The undersigned Lien Claimant, pursuant to SDCL 44-9-21, for and in consideration of the sum of $[________________________________] ("Release Amount"), receipt of which is hereby acknowledged, does hereby fully, finally, and unconditionally release, satisfy, cancel, and discharge the mechanics' lien described above, recorded in the office of the Register of Deeds for [________________________________] County, South Dakota.

This satisfaction covers all amounts claimed under the above-referenced lien statement, including all principal, interest, costs, and attorney's fees.

The Claimant warrants and represents:

☐ The Claimant is the original lien claimant or authorized assignee
☐ Full payment of $[________________________________] has been received
☐ The lien has not been previously assigned, transferred, or encumbered
☐ No other person or entity has any interest in the lien claim
☐ The Claimant has full authority to execute this satisfaction

The Claimant hereby authorizes and directs the Register of Deeds for [________________________________] County to record this Satisfaction and Release and to note the cancellation of the original lien in the records.

IN WITNESS WHEREOF, the undersigned has executed this Satisfaction and Release on [__/__/____].

LIEN CLAIMANT:

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

If Claimant is an Entity:

Entity Name: [________________________________]
By: ______________________________
Name: [________________________________]
Title: [________________________________]

ACKNOWLEDGMENT

State of South Dakota
County of [________________________________]

On this [____] day of [________________], 20[____], before me, a Notary Public in and for said state, 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.

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

2. PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL SATISFACTION AND RELEASE OF MECHANICS' LIEN

Recording Requested By:
[________________________________]

When Recorded, Return To:
[________________________________]
[________________________________]

STATE OF SOUTH DAKOTA
COUNTY OF [________________________________]

Lien Claimant: [________________________________]
Property Owner: [________________________________]
Property Address: [________________________________], South Dakota

Original Lien Information:

Partial Release Declaration:

The undersigned Lien Claimant, in consideration of partial payment of $[________________________________], receipt of which is hereby acknowledged, does hereby partially release and discharge a portion of the mechanics' lien described above.

Lien Reduction Summary:

The remaining lien amount of $[________________________________] continues to encumber the above-described property and remains in full force and effect.

Reason for Partial Release:

☐ Partial payment received for completed work
☐ Resolution of disputed portion
☐ Release of specific parcel(s) from multi-parcel lien
☐ Court-ordered partial release
☐ Other: [________________________________]

IN WITNESS WHEREOF, the undersigned has executed this Partial Release on [__/__/____].

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

ACKNOWLEDGMENT

State of South Dakota
County of [________________________________]

On this [____] day of [________________], 20[____], before me personally appeared [________________________________], known to me to be the person whose name is subscribed hereto, and acknowledged the execution thereof.

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

3. RELEASE BY SURETY BOND

Application for Discharge of Mechanics' Lien by Bond

Pursuant to SDCL 44-9-23

IN THE CIRCUIT COURT OF THE STATE OF SOUTH DAKOTA
[________________________________] JUDICIAL CIRCUIT
[________________________________] COUNTY

APPLICATION FOR DISCHARGE OF MECHANICS' LIEN UPON POSTING BOND

The Applicant, [________________________________], respectfully submits:

1. The Lien Claimant filed a mechanics' lien statement against the Applicant's property on [__/__/____], recorded as Document No. [________________________________] in the office of the Register of Deeds for [________________________________] County.

2. The property encumbered is located at [________________________________], South Dakota, and is legally described as: [________________________________].

3. The lien claims the sum of $[________________________________].

4. The Applicant desires to discharge the lien from the property records by posting a bond pursuant to SDCL 44-9-23.

5. The Applicant files the following affidavit describing the property, the lien, and the Applicant's interest therein.

AFFIDAVIT FOR DISCHARGE OF LIEN

I, [________________________________], being duly sworn, state:

(a) I am the owner of / have an interest in the real property described above.
(b) A mechanics' lien has been recorded against said property as described above.
(c) I desire the discharge of said lien from the records of [________________________________] County.
(d) I am prepared to post a bond in a sufficient amount to secure the lien claim.

______________________________
Affiant

Subscribed and sworn to before me this [____] day of [________________], 20[____].

______________________________
Notary Public

Bond Amount:

WHEREFORE, the Applicant requests:

(a) Acceptance of the attached surety bond;
(b) An order discharging the mechanics' lien from the property records;
(c) Direction to the Register of Deeds to cancel the lien of record.

______________________________
Attorney for Applicant
[________________________________]
SD Bar No. [________________________________]

SURETY BOND FOR DISCHARGE OF MECHANICS' LIEN

Bond No.: [________________________________]

KNOW ALL PERSONS BY THESE PRESENTS:

That [________________________________] ("Principal") and [________________________________] ("Surety"), a corporation authorized to do business as surety in the State of South Dakota, are held and firmly bound unto [________________________________] ("Obligee/Lien Claimant") in the sum of $[________________________________], for which payment we bind ourselves jointly and severally.

CONDITION:

WHEREAS, the Obligee has filed a mechanics' lien against property of the Principal; and

WHEREAS, the Principal desires discharge of the lien pursuant to SDCL 44-9-23;

NOW, THEREFORE, if the Principal satisfies any judgment rendered in favor of the Obligee in any action on the lien claim, this bond shall be void; otherwise it shall remain in full force.

Principal: ______________________________
Surety: ______________________________
Date: [__/__/____]

[SURETY SEAL]

4. DEMAND FOR RELEASE OF MECHANICS' LIEN

[Owner/Attorney Letterhead]

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[________________________________]
[________________________________]
[________________________________]

RE: DEMAND FOR SATISFACTION OF MECHANICS' LIEN
Property: [________________________________], [________________________________] County, South Dakota
Lien Recording: Document No. [________________________________], [________________________________] County Register of Deeds
Date of Recording: [__/__/____]

Dear [________________________________]:

This constitutes a formal demand for the immediate satisfaction and release of the mechanics' lien you recorded against the above-referenced property.

Basis for Demand:

☐ Full Payment Made. The Property Owner has paid the lien claimant the full amount claimed. The sum of $[________________________________] was paid on [__/__/____]. Under SDCL 44-9-21, you are required to execute and deliver a satisfaction of the lien.

☐ Lien Has Expired Under SDCL 44-9-24. The six-year statute of limitations for enforcement of the lien has expired. The lien was recorded on [__/__/____], and no enforcement action has been commenced. The lien must be canceled.

☐ Lien Was Improperly Filed. The lien statement is defective because: [________________________________]

☐ Other Basis: [________________________________]

Legal Consequences Under SDCL 44-9-22:

Under SDCL 44-9-22, if you neglect or refuse to satisfy the lien upon demand after full payment, you shall be liable to the property owner for:

• Actual damages sustained by the property owner;
• Reasonable attorney's fees incurred in obtaining satisfaction; and
• Statutory penalties as provided by law.

You are demanded to execute and deliver a recordable satisfaction of the lien within ten (10) days of receipt of this letter. If the satisfaction is not provided, the Property Owner will pursue all available legal remedies, including an action for damages under SDCL 44-9-22 and a petition for court-ordered cancellation.

Sincerely,

______________________________
[________________________________]
Phone: [________________________________]

5. PETITION TO DISCHARGE MECHANICS' LIEN

IN THE CIRCUIT COURT OF THE STATE OF SOUTH DAKOTA
[________________________________] JUDICIAL CIRCUIT
[________________________________] COUNTY

PETITION TO COMPEL SATISFACTION AND CANCELLATION OF MECHANICS' LIEN

The Petitioner, [________________________________], respectfully petitions this Court as follows:

I. PARTIES

1. Petitioner is the owner of real property located at [________________________________], [________________________________] County, South Dakota.

2. Respondent is the party who recorded a mechanics' lien statement against the Petitioner's property.

II. BACKGROUND

3. On [__/__/____], Respondent recorded a mechanics' lien statement claiming $[________________________________] in the office of the Register of Deeds for [________________________________] County, as Document No. [________________________________].

4. The lien should be discharged and canceled for the following reasons:

☐ Full Payment (SDCL 44-9-21). Petitioner has paid Respondent in full. Payment of $[________________________________] was made on [__/__/____]. Respondent has neglected or refused to satisfy the lien upon demand.

☐ Statute of Limitations Expired (SDCL 44-9-24). More than six (6) years have elapsed since the lien was filed, and no action to enforce the lien has been commenced. The lien has expired by operation of law and must be canceled from the records.

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

☐ Bond Posted (SDCL 44-9-23). Petitioner has posted a bond sufficient to secure the lien claim, and the property should be discharged.

III. LEGAL BASIS

5. Under SDCL 44-9-21, a lien claimant who has received payment must execute and deliver a satisfaction of the lien to the property owner.

6. Under SDCL 44-9-22, neglect or refusal to satisfy a lien upon demand subjects the lien claimant to damages and attorney's fees.

7. Under SDCL 44-9-24, if no action to enforce a lien is commenced within six years, the lien shall be canceled.

IV. RELIEF REQUESTED

WHEREFORE, the Petitioner requests:

(a) An order compelling satisfaction and cancellation of the mechanics' lien;
(b) An order directing the Register of Deeds to cancel the lien of record;
(c) Damages under SDCL 44-9-22 for Respondent's failure to satisfy;
(d) Reasonable attorney's fees and costs;
(e) Such other relief as the Court deems just.

______________________________
Attorney for Petitioner
[________________________________]
SD Bar No. [________________________________]
[________________________________]
Phone: [________________________________]

VERIFICATION

I, [________________________________], being duly sworn, state that the facts in this Petition are true and correct to the best of my knowledge.

______________________________
Petitioner

Subscribed and sworn to before me this [____] day of [________________], 20[____].

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

6. RECORDING INSTRUCTIONS

South Dakota Lien Release Recording Guide

Recording Office: County Register of Deeds

South Dakota has 66 counties. Lien releases are recorded with the Register of Deeds in the county where the original lien was filed.

Major County Register of Deeds Offices:

Recording Requirements:

☐ Original signed satisfaction/release document
☐ Acknowledged (notarized) before a notary public
☐ Recording fee (verify current amount with county Register of Deeds)
☐ Reference to original lien recording (Document No., Book/Page)
☐ Legal description of property consistent with original lien
☐ Return address clearly indicated on the document

Document Format Requirements:

• Paper size: 8.5" x 11"
• Margins: Minimum 0.5" on all sides; 3" top margin on first page for recorder's use
• Ink: Black ink
• Font: Legible, minimum 10-point
• All signatures must be original

SDCL 44-9-21 Requirements for Satisfaction:

The satisfaction must:

1. Be executed by the lien claimant (or authorized representative)
2. Be acknowledged (notarized)
3. Be delivered to the property owner for recording
4. Identify the original lien by recording reference
5. State the lien is satisfied and released

7. STATUTORY REFERENCE TABLE

South Dakota Mechanics' Lien Statutes and Deadlines

Key Deadlines Summary

Penalties for Failure to Satisfy (SDCL 44-9-22)

8. PRACTITIONER NOTES

South Dakota-Specific Considerations

Six-Year Enforcement Period:
South Dakota provides one of the longest enforcement windows in the nation. Under SDCL 44-9-24, a lien claimant has six (6) years to commence an enforcement action. If no action is filed within six years, the lien is subject to cancellation. This long window means property owners may need to use the bond-discharge mechanism under SDCL 44-9-23 to clear a lien before the six-year period expires.

Satisfaction Procedure (SDCL 44-9-21):
The statute requires the lien claimant to execute and deliver a satisfaction to the property owner. The satisfaction must be acknowledged (notarized) and include specific contents identifying the lien and stating that it is satisfied. The property owner then records the satisfaction with the Register of Deeds.

Penalties for Failure to Satisfy (SDCL 44-9-22):
South Dakota imposes meaningful consequences for a lien claimant who neglects or refuses to satisfy a lien upon demand after payment. The lien claimant may be liable for actual damages, attorney's fees, and other costs. This statutory penalty provision provides leverage for property owners dealing with uncooperative lien claimants.

Bond Discharge (SDCL 44-9-23):
To discharge a lien by bond, the property owner files an affidavit with the Register of Deeds describing the property, the lien, and the owner's interest. The owner then posts a bond sufficient to secure the lien claim. The procedure requires involvement of the circuit court for approval of the bond amount.

Register of Deeds System:
South Dakota uses a county-based Register of Deeds system. All lien filings and releases are recorded with the Register of Deeds in the county where the property is located. Each of South Dakota's 66 counties has its own Register of Deeds office.

Verification Requirement:
Lien statements in South Dakota must be "verified" (sworn under oath). Similarly, releases and satisfactions should be notarized/acknowledged to ensure they are accepted for recording.

No State-Level Online Filing System:
Unlike some states with centralized filing systems, South Dakota requires in-person or mail filing with the individual county Register of Deeds. Some counties may accept electronic recording; verify with the specific county office.

This template is provided for informational purposes only and does not constitute legal advice. Consult a qualified South Dakota attorney before use. Laws and procedures are subject to change; verify all statutory citations against current law.

Last Updated: 2026-03-05