Lien waiver
A lien waiver is a signed statement in which a contractor or supplier gives up the right to claim a lien on a property for the amount they have been paid.
A lien waiver is a signed statement in which a contractor or supplier gives up the right to claim a lien on a property for the amount they have been paid.
Definition
A lien is a legal claim on property for unpaid work or materials. A lien waiver says the signer has been paid up to a stated amount and will not claim a lien for it. Waivers can be conditional or unconditional.
A plain example
Illustrative example: when an owner pays a monthly invoice, the contractor signs a waiver covering that payment. The owner keeps it as a record that this amount is settled.
Why it matters
It helps owners avoid paying twice for the same work and helps a lender keep the property free of claims.
Common confusion
A lien waiver is not a receipt, and it is not a release of every claim. Forms and effects vary by place, so the exact wording matters.
On a project
Ask a qualified lawyer or use forms required in your area, and collect waivers from the contractor and from key subcontractors and suppliers.
Quick answers
- What is the difference between conditional and unconditional? A conditional waiver takes effect only once payment is received. An unconditional one takes effect when signed.
- Do I need waivers from subcontractors? Often prudent, since they may also have lien rights.
- Are standard forms available? Some places publish required forms. Check local law.
Related terms
Always check the project drawings and specification, and confirm requirements with the engineer of record and the local authority.
Questions people ask
What is the difference between conditional and unconditional?
A conditional waiver takes effect only once payment is received. An unconditional one takes effect when signed.
Do I need waivers from subcontractors?
Often prudent, since they may also have lien rights.
Are standard forms available?
Some places publish required forms. Check local law.
Sources and further reading
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