What must a contractor do upon receiving a payment for which a lien was placed?

When a contractor receives a payment for which a lien has been placed, it is important for them to file a lien release. This action serves several key purposes within the context of Arizona law and contractor obligations.

Firstly, filing a lien release formally acknowledges that the contractor has been paid for the work in question and therefore relinquishes their claim against the property associated with the lien. This helps to clarify the title of the property and protects the owner from any future disputes related to that particular lien.

Additionally, it promotes transparency and good faith in the contractual relationship between the contractor and the property owner. By releasing the lien, the contractor can reinforce trust and ensure that the property owner feels secure in their transactions.

In contrast, the other options are not suitable responses to the scenario. Moving forward with the project without action can leave unresolved financial disputes. Waiting for notice from the subcontractor or requesting more information from the owner could delay necessary actions and may lead to complications or misunderstandings regarding payments and liabilities. Thus, filing a lien release is the appropriate and legally recognized action in this situation.