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Release & Refiling of the Preliminary Notice

If you file a Preliminary Notice before the lender records the mortgage for the construction loan the lender can buy its way ahead of your lien by paying you for work you did before the construction loan was recorded.  Once you are paid, you must release and re-file your Preliminary Notice.  You must re-file Preliminary Notice no later than twenty (20) after the construction loan was recorded. 

You should only withdraw your Preliminary Notice once payment has been received for the work completed or materials supplied by that date.  Once you withdraw your Preliminary Notice, you are waiving your lien rights to the money due before that date.  

If you have more questions, please watch LienCounsel's webinar "When to Release a Preliminary Notice" on the webinar center at www.liencounsel.com

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