MECHANICS' LIEN RELEASE

State of Tennessee

Pursuant to Tenn. Code Ann. Title 66, Chapter 11

TABLE OF CONTENTS

1. Full Release of Mechanics' Lien
2. Partial Release of Mechanics' Lien
3. Release by Indemnity 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

RELEASE AND SATISFACTION OF MECHANICS' LIEN

Recording Requested By:
[________________________________]

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

Inst. No./Book & Page of Original Lien: [________________________________]

STATE OF TENNESSEE
COUNTY OF [________________________________]

KNOW ALL PERSONS BY THESE PRESENTS:

Lien Claimant Information:

Property Owner Information:

Property Description:

Original Lien Information:

Release Declaration:

The undersigned Lien Claimant, 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' and materialmen's lien described above, recorded in the Register's Office for [________________________________] County, Tennessee.

This release constitutes a complete satisfaction of all claims, demands, and sums secured by the above-referenced lien, including 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 assigned or transferred to any third party
☐ No other person or entity has any interest in the lien claim
☐ The Claimant has authority to execute this release

The Claimant hereby authorizes the Register of Deeds for [________________________________] County, Tennessee, to record this Release and to note the satisfaction on the margin of or cross-reference to the original notice of lien.

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

LIEN CLAIMANT:

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

If Claimant is an Entity:

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

ACKNOWLEDGMENT

State of Tennessee
County of [________________________________]

Before me, the undersigned Notary Public, personally appeared [________________________________], with whom I am personally acquainted (or proved to me on the basis of satisfactory evidence), and who, upon oath, acknowledged himself/herself to be the [________________________________] of [________________________________], the within named bargainor, and that he/she as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained.

Witness my hand and seal at office in [________________________________], Tennessee, this [____] day of [________________], 20[____].

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

[NOTARIAL SEAL]

2. PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL RELEASE OF MECHANICS' LIEN

Recording Requested By:
[________________________________]

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

STATE OF TENNESSEE
COUNTY OF [________________________________]

Lien Claimant: [________________________________]
Property Owner: [________________________________]
Property Address: [________________________________], Tennessee

Original Lien Information:

Partial Release Declaration:

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

Lien Reduction Summary:

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

Reason for Partial Release:

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

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

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

ACKNOWLEDGMENT

State of Tennessee
County of [________________________________]

Before me personally appeared [________________________________], known to me, who acknowledged the execution of this instrument.

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

[NOTARIAL SEAL]

3. RELEASE BY INDEMNITY BOND

Bond to Indemnify Against Recorded Lien

Pursuant to Tenn. Code Ann. 66-11-142

INDEMNITY BOND TO DISCHARGE MECHANICS' LIEN

Bond No.: [________________________________]

Recording Requested By:
[________________________________]

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

Cross-Reference to Lien: Instrument No. [________________________________]

KNOW ALL PERSONS BY THESE PRESENTS:

That we, [________________________________] ("Principal/Obligor"), and [________________________________] ("Surety"), a corporation duly authorized and admitted to do business in the State of Tennessee and licensed by the State to execute bonds as surety, are held and firmly bound unto [________________________________] ("Obligee/Lien Claimant") in the penal sum of $[________________________________] (being equal to or exceeding the amount of the lien claimed), for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally.

RECITALS:

WHEREAS, the Obligee recorded a notice of mechanics' lien in the Register's Office for [________________________________] County, Tennessee, as Instrument No. [________________________________], on [__/__/____], claiming a lien in the amount of $[________________________________] against property located at [________________________________]; and

WHEREAS, the Principal desires to discharge said lien from the property pursuant to Tenn. Code Ann. 66-11-142;

CONDITION OF THIS BOND:

NOW, THEREFORE, the condition of this obligation is such that if the Principal (Obligor) shall satisfy any judgment that may be rendered in favor of the Obligee (Lien Claimant) in any action to enforce the mechanics' lien claim, then this obligation shall be null and void; otherwise, it shall remain in full force and effect.

Reference to Lien of Record:
The lien against which this bond is filed is recorded at Instrument No. [________________________________], [Book [____], Page [____]], in the Register's Office for [________________________________] County, Tennessee.

NOTICE: Pursuant to TCA 66-11-142, the recording of this bond with the Register of Deeds operates as a discharge of the lien from the real property. The lien claimant's rights transfer to this bond.

Principal/Obligor: ______________________________
Print Name: [________________________________]
Date: [__/__/____]

Surety: ______________________________
Print Name of Company: [________________________________]
By (Attorney-in-Fact): ______________________________
Date: [__/__/____]

[SURETY CORPORATE SEAL]

Surety Agent Information:
Name: [________________________________]
Address: [________________________________]
License No.: [________________________________]
Phone: [________________________________]

ACKNOWLEDGMENT

State of Tennessee
County of [________________________________]

Before me personally appeared [________________________________] (Principal) and [________________________________] (Attorney-in-Fact for Surety), known to me, who acknowledged the execution of this bond.

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

NOTICE TO SURETY OF RECORDED BOND

Required by TCA 66-11-142

Date: [__/__/____]

[________________________________] (Surety Company)
[________________________________]
[________________________________]

RE: Notice of Recorded Indemnity Bond
Bond No.: [________________________________]
Instrument No. of Recorded Bond: [________________________________]
Property: [________________________________], Tennessee
Original Lien Instrument No.: [________________________________]

Dear Surety:

Please be advised that the above-referenced indemnity bond to discharge a mechanics' lien was recorded with the Register of Deeds for [________________________________] County, Tennessee, on [__/__/____].

Pursuant to Tenn. Code Ann. 66-11-142, the recording of the bond operates as a discharge of the lien, and the surety is hereby notified of the recording.

Sincerely,

______________________________
[________________________________]

4. DEMAND FOR RELEASE OF MECHANICS' LIEN

[Owner/Attorney Letterhead]

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[________________________________]
[________________________________]
[________________________________]

RE: DEMAND FOR RELEASE OF MECHANICS' LIEN
Property: [________________________________], [________________________________] County, Tennessee
Lien Instrument No.: [________________________________]
Date of Recording: [__/__/____]

Dear [________________________________]:

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

Basis for Demand:

☐ Full Payment Made. The Property Owner has paid the full amount claimed under the notice of lien. Payment of $[________________________________] was made on [__/__/____] by [________________________________]. Despite receiving full payment, you have failed to record a release.

☐ Lien Has Expired Under TCA 66-11-115. The lien claimant failed to commence suit to enforce the lien within the time required by TCA 66-11-115 (one year from the date the improvement was completed or abandoned, or ninety days after the lien was recorded, whichever is later). The lien has expired.

☐ Indemnity Bond Recorded. An indemnity bond has been recorded pursuant to TCA 66-11-142, discharging the lien from the property.

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

☐ Other: [________________________________]

Demand:

You are hereby demanded to execute and record a release of the above-referenced mechanics' lien within fifteen (15) days of receipt of this letter.

Consequences of Failure:

If you fail to release the lien within the time specified, the Property Owner will:

1. File a petition in the Chancery Court or Circuit Court to compel release;
2. Record an indemnity bond under TCA 66-11-142 to discharge the lien;
3. Seek recovery of all costs, attorney's fees, and damages; and
4. Pursue all other available remedies under Tennessee law.

Sincerely,

______________________________
[________________________________]
Phone: [________________________________]

5. PETITION TO DISCHARGE MECHANICS' LIEN

IN THE CHANCERY COURT FOR [________________________________] COUNTY, TENNESSEE
AT [________________________________]

PETITION TO COMPEL RELEASE OF MECHANICS' LIEN

The Petitioner, [________________________________], by and through undersigned counsel, petitions this Court as follows:

I. PARTIES

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

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

II. BACKGROUND

3. On [__/__/____], Respondent recorded a notice of mechanics' lien in the Register's Office for [________________________________] County as Instrument No. [________________________________], claiming the sum of $[________________________________].

4. The lien should be discharged for the following reason(s):

☐ Full Payment. Petitioner paid Respondent in full. The sum of $[________________________________] was paid on [__/__/____].

☐ Expired Lien (TCA 66-11-115). The enforcement period has expired. The improvement was completed/abandoned on [__/__/____]. The lien was recorded on [__/__/____]. No suit was commenced within the statutory period.

☐ Defective Lien. The notice of lien fails to comply with TCA 66-11-112 because: [________________________________]

☐ Indemnity Bond Filed. An indemnity bond under TCA 66-11-142 has been recorded, discharging the property.

☐ Overstated Lien. The lien amount of $[________________________________] exceeds the actual amount owed of $[________________________________].

III. LEGAL BASIS

5. Under Tennessee law, a property owner is entitled to discharge of a mechanics' lien upon full payment or upon expiration of the enforcement period.

6. Under TCA 66-11-142, recording of an indemnity bond in the amount of the lien with sufficient corporate surety operates as a discharge of the lien.

IV. RELIEF REQUESTED

WHEREFORE, the Petitioner requests:

(a) An order compelling release and discharge of the mechanics' lien;
(b) An order directing the Register of Deeds to note the discharge on the record;
(c) Attorney's fees and costs of this proceeding;
(d) Such other relief as the Court deems proper.

______________________________
Attorney for Petitioner
[________________________________]
TN BPR No. [________________________________]
[________________________________]
Phone: [________________________________]

VERIFICATION

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

______________________________
Petitioner

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

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

6. RECORDING INSTRUCTIONS

Tennessee Lien Release Recording Guide

Recording Office: County Register of Deeds

Tennessee has 95 counties, each with its own Register of Deeds office. Record the release in the same county where the original lien was recorded.

Major County Registers of Deeds:

Recording Requirements:

☐ Original signed release document
☐ Notarized acknowledgment
☐ Recording fee (verify with county Register of Deeds)
☐ Cross-reference to original lien instrument number
☐ Property description or tax map reference consistent with original lien
☐ Return address on the document
☐ For indemnity bonds under TCA 66-11-142: bond must state Book/Page or Instrument No. of the lien

Document Format Requirements (Tennessee):

• Paper size: 8.5" x 11"
• Margins: Minimum 0.5" on sides and bottom; sufficient space at top for recording stamp
• Ink: Black ink for signatures
• Font: Legible, minimum 10-point
• Must identify the county and state
• Must reference original recording information (Instrument No., Book/Page)

Special Tennessee Note:
Many Tennessee counties have transitioned to electronic recording. Check with the specific county Register of Deeds regarding availability of e-recording.

7. STATUTORY REFERENCE TABLE

Tennessee Mechanics' Lien Statutes and Deadlines

Key Deadlines Summary

Indemnity Bond Requirements (TCA 66-11-142)

8. PRACTITIONER NOTES

Tennessee-Specific Considerations

Prime vs. Remote Contractor Distinction:
Tennessee distinguishes between "prime contractors" (those in direct contract with the property owner) and "remote contractors" (subcontractors, sub-subcontractors, laborers, and material suppliers not in direct contract with the owner). Remote contractors must serve a preliminary notice on the owner to preserve lien rights. This distinction is relevant when verifying the validity of a lien before preparing a release.

Indemnity Bond Discharge (TCA 66-11-142):
This is Tennessee's primary statutory mechanism for discharging a mechanics' lien without payment. Key points:
- The bond amount must equal the lien amount (not 150% or 200% as in some states)
- The surety must be a corporate surety authorized in Tennessee
- Recording the bond automatically discharges the lien -- no court order needed
- The obligor must notify the surety after recording
- An existing payment bond can be recorded as an alternative to a new indemnity bond

Chancery Court vs. Circuit Court:
Tennessee mechanics' lien enforcement and discharge proceedings may be brought in either Chancery Court or Circuit Court, depending on the county and the nature of the relief sought. Chancery Court is traditional for equitable relief, while Circuit Court handles law actions. Many practitioners prefer Chancery Court for lien discharge petitions.

95-County System:
Tennessee has 95 counties, each with its own Register of Deeds. Be careful to file the release in the same county where the original lien was recorded. Some properties near county lines may have liens in multiple counties if the property straddles a boundary.

One-Year Enforcement Window:
The suit to enforce the lien must be commenced within one year after the completion or abandonment of the improvement, or within 90 days after the notice of lien is recorded, whichever is later. This dual-deadline system can create confusion; always calculate both dates.

Residential Property Considerations:
Tennessee has special provisions for residential property liens. Under TCA 66-11-103 and related sections, remote contractors on residential projects must provide specific notices. If these notices were not properly given, the underlying lien may be invalid, which simplifies the release process.

No Statutory Form:
Tennessee does not prescribe a specific statutory form for a mechanics' lien release. The release should be in recordable form, notarized, and contain sufficient information to identify and cross-reference the original lien.

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

Last Updated: 2026-03-05