A lien waiver is a legal document in which a contractor, Subcontractor, or Supplier waives their right to file a lien against a property after receiving payment.
Why Lien Waivers Are Important
Lien waivers protect property owners from payment disputes while ensuring contractors and suppliers receive compensation. Without them, unresolved payments could result in legal claims against the project.
Types of Lien Waivers
- Conditional Waiver – Effective only once payment clears.
- Unconditional Waiver – Becomes effective immediately upon signing.
- Partial Waiver – Applies to a portion of work completed.
- Final Waiver – Releases all future lien rights upon full payment.
Related Terms: Mechanic’s Lien, Payment Bond, Retainage
FAQ
Are lien waivers legally required?
A: It depends on the jurisdiction and contract terms, but they are commonly used to protect all parties.
Can a lien waiver be revoked?
A: Typically, no. Once signed, a lien waiver is legally binding.