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  • Kristen Shields

Partial Release of Lien v. Full Discharge of Lien

While the particulars can vary by state, the general rule of thumb is that the lien amount can be amended to decrease, but not increase. To illustrate, Tennessee, for example, requires a Notice of Nonpayment having been issued for each month in which you completed work but for which you have not been fully paid. To increase the amount cited within the claim of lien would violate the notice requirement because the lien amount would exceed that for which the party was on notice.

In addition, there are very specific rules in Tennessee surrounding Notice to Owner requirements that lay the groundwork for a company to be eligible to lien. Non-compliance could allow for complete discharge of a lien, and filing a lien when this notice is required actually constitutes a crime in Tennessee. A company’s position on a project and whether it is residential or commercial dictates whether the Tennessee Notice to Owner is required. You may already be fully apprised, but we would be happy to walk you through these fine distinctions in your state.

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