How many days does a contractor have to file a release for a lien to avoid penalties after being paid?

When a contractor receives payment for their work, it is essential for them to file a release of lien within a specified timeframe to protect themselves from penalties associated with not doing so. In this case, the correct timeframe is 20 days. Filing a release of lien promptly after payment ensures that the contractor officially acknowledges their receipt of funds and relinquishes any claim or lien against the property associated with that payment. This action helps maintain a clear record and fosters trust between the contractor and the property owner, as well as other stakeholders involved in the project.

For contractors, understanding the importance of this 20-day requirement is crucial for compliance with lien laws and for avoiding potential disputes or financial consequences.