Florida Building Contractor Business/Finance Practice Exam

What type of document removes property from the threat of lien?

1. Release of lien

2. Notice of intent

3. Waiver of lien

4. Property deed

The correct answer is: Release of lien

The removal of property from the threat of a lien is effectively accomplished through a release of lien. This document serves as a formal declaration that any existing claim or lien against the property is no longer valid, thus removing its encumbrance. A release of lien is often issued by a contractor or subcontractor after receiving payment in full for services rendered, ensuring that the property owner is not at risk of any future claims from that specific contractor regarding unpaid work. In contrast, while a waiver of lien also plays a role in lien rights, it is typically used in scenarios where a party agrees to give up their right to file a lien before or upon receiving payment rather than removing an existing threat. A notice of intent, on the other hand, is a preliminary document that notifies property owners of a claimant's intention to file a lien but does not remove any existing threats. Lastly, a property deed pertains to the ownership of the property and does not have direct implications for lien removal.