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Financialaka: mechanic's lien waiveraka: lien releaseaka: conditional waiver

Lien Waiver

In Plain English

A signed document from a contractor or supplier giving up their right to file a lien in exchange for payment.

Definition

A lien waiver is a legal document signed by a contractor, subcontractor, or supplier that relinquishes their right to file a mechanics lien against the property for the amounts covered by the waiver. Conditional waivers are effective only upon receipt of payment; unconditional waivers take effect immediately upon signing. Lien waivers are exchanged with each progress payment and final payment to provide the owner with a clear title.

Example

The GC collected conditional lien waivers from all subcontractors before submitting each pay application to the owner.

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