Free ADU Tool · California

ADU Lien Release Checklist

Paying your builder doesn't mean the plumber, electrician or lumber yard got paid. If they aren't, they can record a mechanics lien on your home. This checklist tracks a signed release from each of them before and after every payment.

Step 1List everyoneYour builder, plus each subcontractor and supplier, especially anyone who sends you a Preliminary Notice.
Step 2Before you payCollect a conditional release from everyone that payment will pay.
Step 3After you payCollect an unconditional release from each of them before the next payment.

1. Everyone who could file a lien

Ask your builder for a list of every subcontractor and material supplier on the job. Subcontractors and suppliers who may need to file a lien must send you a Preliminary Notice, so add anyone who sends one and note the date.

General contractor (your builder)

2. Releases for each payment

Before you pay, get a signed conditional release from everyone that payment will pay. After you pay, get an unconditional release from each of them. Tick each one as it comes in.

0 of 1 payment fully released.

Payment name

This is the final paymentI've made this payment

Before you pay. Get conditional releases from: Your general contractor.

Forms for this payment: Conditional Waiver and Release on Progress Payment (Civil Code § 8132) and Unconditional Waiver and Release on Progress Payment (§ 8134).

Your general contractor

Conditional release signedBefore you payUnconditional release signedAfter you payNot paid from this payment

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General information, not legal advice. This tool explains California rules in plain English. It can't review your contract. For advice about your situation, talk to a California attorney or call the Contractors State License Board (CSLB) at 800-321-2752.

California only. The rules cited here are California law. Oregon, Washington and other states have their own rules, which this tool doesn't check.

A checklist can't confirm that a release is genuine or filled in correctly. Make sure the person who was paid signs it, as CSLB advises.

Why lien releases matter

California requires home improvement contracts to include a Mechanics Lien Warning. Part of it reads:

"Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics' liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien."

It happens on ADU jobs. In October 2026 CSLB reported investigating more than 200 complaints against one former ADU builder, alleging unpaid subcontractors as well as abandoned projects and payments made ahead of the work.

Sources: CSLB Contracting for Success; CSLB news release #26-02.

California's four release forms

CSLB says a release must substantially follow one of four forms written into the Civil Code to be effective. CSLB hosts a fillable copy of each:

California statutory lien release forms
Form	Civil Code	When to use it
Conditional Waiver and Release on Progress Payment	§ 8132	Before a progress payment, when the person hasn't been paid yet. It's only effective if they're actually paid.
Unconditional Waiver and Release on Progress Payment	§ 8134	After a progress payment, when the person states they've received it.
Conditional Waiver and Release on Final Payment	§ 8136	Before the final payment. It's binding only with evidence of payment, such as their endorsement on a check the bank has paid, or their written acknowledgment of payment.
Unconditional Waiver and Release on Final Payment	§ 8138	After the final payment, when the person states they've been paid in full.

Progress-payment releases don't cover everything. The forms list exceptions such as retentions, extras the person hasn't been paid for, and contract rights.
The unconditional forms warn the signer that they're enforceable even if the signer hasn't been paid, and tell them to use a conditional release instead. Don't ask for an unconditional release before you pay.
Getting a release from your builder alone doesn't guarantee the subcontractors and suppliers were paid.

Sources: CSLB waiver and release forms; Civil Code §§ 8132–8138.

More ways CSLB says to prevent a lien

Save every Preliminary Notice. Subcontractors and suppliers who may need to file a lien must send one, normally within 20 days of starting work or delivering supplies. Your builder and laborers don't have to send one.
Pay with joint checks. Make the check payable to both the contractor and the subcontractor or supplier, after comparing the bill with your payment schedule and the notices you've received.
Hold the next payment until releases arrive. You may withhold further payments until you have unconditional releases for work already paid for (Business and Professions Code section 7159.5(a)(6)).
Consider a Notice of Completion. Recording one with the county recorder after the work is finished shortens the time others have to record a lien. CSLB says homeowners have 15 days from completion to record it.

Sources: CSLB: How to Prevent a Mechanics Lien; Bus. & Prof. Code § 7159.5(a)(6). Make sure each payment is also within the limits with the payment schedule checker.

Frequently asked questions

What's the difference between a conditional and an unconditional lien release?

A conditional release only takes effect once the person signing it is actually paid, so you collect it before you pay. An unconditional release says the person has already been paid, and the form itself warns that it's enforceable against them even if they weren't, so you collect it after you pay.

Do I need releases from subcontractors if I paid my builder?

Yes. CSLB warns that even if you pay your contractor in full, unpaid subcontractors, suppliers and laborers may record a mechanics lien on your property. Paying your contractor, or getting a release from your contractor, doesn't guarantee they paid everyone else.

Can I hold back a payment until I get lien releases?

Yes. Under Business and Professions Code section 7159.5(a)(6), after each payment the contractor has to get you a full, unconditional release for the work paid for if you ask, and you may withhold all further payments until those releases are furnished.

Which lien release forms does California use?

California has four statutory forms in Civil Code sections 8132, 8134, 8136 and 8138: conditional and unconditional releases for progress payments, and conditional and unconditional releases for the final payment. CSLB says a release must substantially follow one of these forms to be effective.

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Sources

Official California sources, checked October 26, 2026. Laws change, so follow the links for the current text.

Payment Schedule CheckerCheck the down payment and payment timing Inspection ChecklistWhat to check and photograph at each stage