Affidavit to Remove Lien (Ohio)

When a Affidavit has been filed and the lien claimant has subsequently been paid, the property owner may file an affidavit attesting to the fact that the lien has been satisfied. The lienholder has thirty days from receipt of this affidavit to file a lien release or be subject to pay the property owner damages as a result. O.R.C. 1311.01(B)(3).

Lending institutions may not release funds to a contractor until that contractor has filed an affidavit stating that the contractor has paid all subcontractors, laborers, and materialmen in full, and that there are no further claims pending against the project. A property owner may issue written demand that the contractor issue this affidavit and may withhold payment until the affidavit is received. O.R.C. 1311.01(B)(4).

If there is a dispute between subcontractors and the principal contractor regarding payment, such that the subcontractor will not release his lien, under Ohio statutes the property owner is entitled to withhold payment to the principal contractor in the amount of the lien. In response, the principal contractor and lending institution may demand that lien holder provide them with information regarding the amount of the lien and the dates upon which work was performed. The owner or lending institution may only release payment to the original contractor when, the lien holder has given notice that he has been paid, or the subcontractor issues a lien release, or the original contractor provides a bond, or the time under which a lien may be filed has expired. O.R.C. 1311.01(B)(8).