How Can an Owner Discharge a Mechanic's Lien After It Expires?

Mechanic's liens, once filed, must be enforced by the lien claimant filing a lawsuit to foreclose on the lien. In California, the time for enforcement of a lien is 90 days; in Oregon it is 120 days. In Washington, a lien claimant has eight months from the date the lien was recorded. If a lien claimant does not enforce the mechanic's lien within such time period, the lien expires.

However, just because a lien is expired, does not mean that it does not continue to show on an owner's title report. In Oregon and California, the lien statutes permit an owner to have the lien discharged directly if a lien claimant fails to respond to such a request. Washington's lien statute has no clear-cut approach.

Removing a Lien in Washington State

The question is then how should an owner in Washington seek to remove such a lien from its property? Below are a few of the options to obtain removal of such a lien.

• Communicate that the lien has expired and request that the lien claimant provide a claim release.
• Settle with the lien claimant. Under RCW 60.04.071, after payment by an owner and acceptance of that payment by a lien claimant, the lien claimant is required to provide a lien release upon demand by an owner.
• File a civil action against the lien claimant to quiet title.
• Seek a declaratory judgment stating that the lien has expired.

In an unpublished opinion, the Washington Court of Appeals, in 2400 Elliott, LLC v. VP Elite Construction, LLC, placed its "seal of approval" on the plaintiff's actions in this case. RCW 60.04.141 states that

[n]o lien created by this chapter binds the property subject to the lien for a longer period than eight calendar months after the claim of lien has been recorded unless an action is filed by the lien claimant…to enforce the lien…

Thus, plaintiffs in this case filed an action seeking 1) a declaratory judgment that the lien had expired, 2) an order compelling the lien claimant to deliver a release of lien, and 3) attorneys' fees and costs.

The court ruled that, even though RCW 60.04.141 does not affirmatively require a lien claimant to provide an owner a release of lien upon expiration of the mechanic's lien, an owner may seek such relief as the recorded lien "remained a potential cloud on title even if the underlying lien was clearly invalid." The court also confirmed that the lien claimant was required to pay the owner's reasonable attorneys' fees in obtaining such a declaratory judgment.

Owners should consult counsel familiar with construction litigation in Washington to obtain discharge of a mechanic's lien.