When to Release a Lien
In Montana, you should release a lien when the underlying obligation has been satisfied—typically when payment is received in full. Montana law may require lien release within a specific timeframe after satisfaction.
Preparing the Release Document
A Montana lien release must identify the original lien, including the recording information, property description, and parties. The release document typically requires notarization before recording.
Recording the Release
Like the original lien, releases are recorded with the County Clerk & Recorder in Montana. The release must be recorded in the same county where the original lien was recorded. Fees typically range from $15-40.
Partial vs Full Releases
Montana allows for partial lien releases when partial payment is received. A partial release reduces the lien amount while maintaining claims for the unpaid balance. Specify the remaining amount clearly.
Penalties for Failure to Release
Montana may impose penalties on lien claimants who fail to release satisfied liens within required timeframes. These can include liability for actual damages, attorney's fees, and statutory penalties.
Obtaining a Release
If you're a property owner who has satisfied a lien, request a release from the lien claimant promptly. If they fail to provide one, Montana law may provide remedies to remove the invalid lien from your property.
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