A Montana construction lien release must be filed by the lienholder with the county clerk and recorder within five business days after the property owner, having paid for the work or materials, requests it in writing. The deadline comes from MCA 71-3-538, and the clock starts when the owner makes the request, so put the request in writing and keep a dated copy.1Montana State Legislature. Montana Code 71-3-538 – Release of Notice of Right to Claim Lien
What the Release Document Must Contain
The release is filed with the clerk and recorder in the county where the improved property sits. Montana law requires three specific pieces of information drawn from the original notice of the right to claim a lien:
- The clerk and recorder’s file number for the original notice.
- The date the original notice was filed.
- The name of the person who received the original lien notice.
It has to be signed by the person who filed the original notice or someone authorized to sign on their behalf.1Montana State Legislature. Montana Code 71-3-538 – Release of Notice of Right to Claim Lien When you get a copy of the recorded release, check those details against the original lien. A release with a wrong file number or misdescribed property can leave the cloud on the title even after it’s filed.
Pay the Lien, and the Filing Costs
One requirement trips up a lot of property owners. If you pay off a lien before the lienholder has sued or started foreclosure, you also have to reimburse the lienholder’s costs and attorney fees for filing and recording the original lien. Until those costs are covered, the lienholder is not obligated to release the lien.2Montana State Legislature. Montana Code 71-3-131 – Acknowledgment of Lien Satisfaction – Penalty If the release is stuck, confirm you’ve paid those filing costs along with the underlying debt.
Using a Surety Bond to Clear the Title
When you need the lien off your property quickly and cannot wait for the lienholder to cooperate, Montana lets you substitute a bond. Under MCA 71-3-551, the property owner, the original contractor, or any subcontractor can file a bond that stands in for the lien.3Montana State Legislature. Montana Code 71-3-551 – Substitution of Bond Allowed – Filing – Amount – Condition
The bond has to equal one and a half times the amount of the lien. It can be posted in cash, or written by a corporate surety, though a surety-written bond needs a district court judge’s approval. File it with the clerk of the district court in the county where the property is located.3Montana State Legislature. Montana Code 71-3-551 – Substitution of Bond Allowed – Filing – Amount – Condition
Timing matters. The bond must be filed before the lien claimant begins a foreclosure action, or within 30 days of being served with a foreclosure complaint. Once filed, the lien against the real estate is discharged and the bond takes its place.4Montana State Legislature. Montana Code 71-3-552 – Lien Discharged Upon Filing of Bond The claimant’s dispute moves off your title and onto the bond, so you can sell or refinance while the underlying fight continues.
Court Remedies When the Lienholder Won’t Release
If the lienholder has been paid and still refuses to file the release, or if the parties disagree about whether the debt is really satisfied, the courts offer a few routes.
Declaratory Judgment
You can file a declaratory judgment action in district court asking the court to rule on whether the lien has been satisfied or whether it was valid to begin with. Montana’s declaratory judgment statute gives courts broad authority to declare rights and legal relationships, and those declarations carry the same force as a final judgment.5Montana State Legislature. Montana Code 27-8-201 – Scope of Power to Render Declaratory Judgments This is the most direct path when the real argument is about whether you actually owe anything.
Compelling the Release and Collecting Damages
You can also ask a court to order the lienholder to file the release and seek the $100 civil penalty under MCA 71-3-131, along with any other damages you can prove.2Montana State Legislature. Montana Code 71-3-131 – Acknowledgment of Lien Satisfaction – Penalty That damages language is where real recovery lives: a sale that fell through, extra interest on financing you could not refinance, or carrying costs you would not have otherwise paid. Documentation decides these cases, so hold on to payment records, your written release demand, and anything showing a transaction that was blocked by the lingering lien.
Filing Fees and Practical Steps
Recording fees for a lien release are set at the county level. Lake County, for example, charges $20 for the first page and $10 for each additional page as of late 2025. Rates vary elsewhere, so call the clerk and recorder in the county where the lien was recorded before you file.
A few habits make the process cleaner. Make your release request in writing, and date it, because that is what starts the five-business-day clock. Keep copies of all payment documentation, including canceled checks, wire confirmations, and any written settlement. When the recorded release comes back, read it against the original lien and confirm the file number, filing date, name, and property information all line up.
Why Confirming the Release Matters
An unreleased lien is one of the most common obstacles to closing a real estate transaction. Title companies run searches before issuing title insurance, and an outstanding construction lien will almost always have to be resolved before a sale or refinance can close. Buyers and lenders rely on clear title, and neither will usually accept a property with an unresolved lien attached.
For sellers, an old lien that should have been released years ago can cost weeks while you track down the lienholder and get the paperwork filed. If the original lienholder has gone out of business or cannot be located, you may need a court order to clear the record. The best protection is simple: confirm every lien release is actually recorded when you pay, rather than assuming it was handled.