Release of Lien

A release of lien is the relinquishment or giving up of a right or claim to a lien by the person in whom it exists, to the person against whom it could have been enforced. Once the lien claim is satisfied, by the payment of the amounts due, together with the costs incurred and the fees for cancellation, the lien creditor has an obligation to record a Release of Lien if the request is made properly by any person with an interest in the property. See Sample Forms at the end of these materials for examples of lien releases. This release of lien must be made within ten days of the request. Utah Code Ann. § 38-1-24 (Lexis 2005).

If a formal release is not placed on the county land records within ten days from the date of the request, the lien holder will be required to pay to the person making the request a penalty of $100 dollars per day until the lien is canceled. Utah Code § 38-1-24. The Supreme Court of Utah holds the view that, “As a condition precedent [to a land owner’s] entitlement to the penalty he [is] obligated to meet the demands of the statute with particularity. Einerson v. Central Lumber & Hardware Co., 14 Utah 2d 278, 382 P.2d 655 (1963). In the Einerson case, the court held that the penalty for failure to release a lien could not be exacted where neither the party who purchased the materials in question nor the landowners paid or tendered the costs incurred and the fees for cancellation of the lien as the statute requires, but only paid the amount of the debt.