Jul 01

Are you in the construction business? If yes, you should be a familiar with lien waivers, whether you are a construction client, contractor, or homeowner. A lien waiver may not seem like a minor item in a construction contract to many, but if it’s not used the right way and in a timely manner this could result in problems for all parties on a project, from suppliers to homeowners.

A lien waiver is normally used in the process for mechanic’s lien to let the claimant party, which is usually a supplier, contractor or subcontractor, let another party, which is usually the owner, knows that payment has been received and so any future lien rights is waived for the property. Many people take lien waivers for granted in the industry because they are a routine part of the construction contracts, but this should not be the case.

 

Can Lien Waivers protect you against contractors/subcontractors?

It is common for owners to ask contractors, sub-contractors and even other lower-tier ones to submit lien waivers in order to ensure that mechanics liens does not appear unexpectedly on projects.

A lien waiver is the affirmation that the contractor gives to the owner for the receipt of payment and a lien will not be recorded against the property for such work. Once a standard lien waiver is signed by the contractor and it’s submitted to the owner, that person has waived all lien rights that might have been related to any work done on the project up to that date, irrespective of whether or not the contractor has received payment. For the owner, the purpose of a lien waiver is quite clear as its to ensure that all the contractors are accounted for and paid up to minimize the risk of having mechanics liens on their property.

Generally speaking, lien waivers can be helpful for homeowners and owners of any commercial project. For instance, a homeowner would want to know about the money that the bank distributed to the general contractor, while the bank would want to ensure that the money is used for the right purpose. In this case, they will want to get a lien waiver from whoever is getting paid.

Types of Lien Waivers

There are normally two kinds of lien waivers, the waiver-to-date and the final waiver. Persons submit the waiver-to-date frequently for progress payments and waive their lien rights to the date of a lien waiver. On the other hand, the final waiver will be submitted during a lien process after the final payment is received and it will waive all the lien rights on a project.

The lien waivers could be unconditional or conditional, as well as apply to final or partial payment. An unconditional one on a partial payment will unconditionally release all the claimant rights through a certain date. A conditional one on partial payment states that the waiver is effective proof for any lien claim made on a property if a claimant is paid to date, thus providing the highest protection for a supplier, contractor, and sub contractor.

Lastly, a conditional waiver on any final payment will release all the rights that a claimant has to file the mechanic’s lien process once they are paid to date. The unconditional final waiver on final payment will release the claimant’s rights to put a mechanics lien unconditionally on the owner’s property, this providing more protection to owners.

Sep 30

CONTRACTOR LIEN RELEASE OR SUBCONTRACTOR LIEN WAIVER

One of the safest ways to guard against you as the property owner receiving a lien on your property, include a subcontractor lien waiver in your initial contract. This is important if your intention is to hire someone to help you out in home improvement.

What is a subcontractor lien waiver?

Now a lien is a form of claim that is placed on a property in order to make sure a debt is paid or to meet a certain obligation in exchange for materials that have either been supplied, or for the services rendered by a contractor or a subcontractor.

A mechanic’s lien can be used by contractors and used to lay claim on a property whose owner owes money for services rendered. A contractor can use the lien on a property to enforce payment if he or she feels that the term of services have been duly satisfied.

As a property owner, you must guard against your contractors or subcontractors owing their employees or not paying for the materials used on your property. If you do not do this, a lien can be placed on your property and you will be held responsible for the non-payment of the expenses incurred. The only way to avoid this is to ensure you have signed a subcontractor lien release form.

You may be wondering or asking what to do to avoid liens during your projects. First of all you, as a home owner should ensure that you are working with contractors that are certified or licensed, bonded and insured; then make sure to include a subcontractor lien waiver clause in the project’s contract. With this lien waiver in place, both parties can sign off at the successful completion of the project and state that the contract requirements have been met; this also takes into account that the overall contractor has made all necessary payments to suppliers of materials, subcontractors and/or vendors. In case the general contractor is reluctant to sign off on this, you have the liberty to withhold payment until he or she has proved they have paid their suppliers and subcontractors.

The importance of a subcontractor lien waiver cannot be overemphasized when it comes to using it for large projects that will involve working with contractors and subcontractors, equipment lessor, suppliers of materials as well as with any other group.

Although the general principle about the enforcement of liens and subcontractor releases are the same everywhere, it is important to know how they are enforced in your particular area. This is because each state or borough has different criteria for the application of liens and their releases.

Home owners should also take note that contractors nowadays are using liens during recessions, and can therefore, be held responsible for payment by material suppliers, electricians and other subcontractors.

 

May 22

What is a Mechanic’s Lien Waiver?

In a construction project where there involves a contractor and the claimant, the payment usually comes first even if the construction has not yet started. And, sometimes it also comes during the construction itself or after. Therefore, to protect the right of the owner to the whole property after paying, a documentary evidence must be present. The document that could appropriately be signed here is the mechanic’s lien waiver.

A mechanic’s lien waiver is signed by the claimant and held by the contractor to prove that the latter has paid and the former received the payment. Hence, no rights remain to the claimant after signing the said document as he waives it all to the contractor. He does not have the right to seek for mechanics lien over the property later on.

There could be two reasons why this waiver is issued. One is to let the contractor ensure that the contractual will not run after his property after payment, and second is when the contractual wants to release right over the property because he is being paid on time.

Types of Lien Waivers

These are the types of lien waivers and each has different forms. So, if you see one as the most appropriate, use that over the others.

  1. Conditional on Progress Payment

All rights are waived as long as payment is up to date.

  1. Unconditional on Progress Payment

All rights are waived unconditionally, regardless of being paid or not.

  1. Conditional on Final Payment

The claimant has no right to file a mechanics lien if payment is updated.

  1. Unconditional on Final Payment

The claimant has no right to file a mechanics lien regardless of being paid or not.

Filing a Mechanic’s Lien

If you have not signed any waiver, you can claim a mechanic’s lien once you noticed that you are not being paid right. What you need to do first is to look for a lawyer for help about how to make the whole document or if there is a general mechanic’s lien template. Your lawyer surely knows more about that so he can help you more with it. However, if you want to reduce the fees that will be spent for a lawyer, you may also get free mechanics lien form online. Upon filing the lien, make sure that you passed some of the criteria set for claiming. One major criterion is that, it should have been 90 days since you stopped working for a project because you are not being paid anymore. Other rules regarding the filing of a mechanic’s lien may also vary depending on what state you are in. So make sure you have a deep understanding over those before filing so you will not be having any problems in claiming the lien soon.

Everybody has the right to be paid for what is due, so upon binding in a contract, make sure not to sign a waiver if you have not thought of the possibilities well. Do not rush even if it is your friend who contracted you since filing lien could be complicated.

Nov 03

What is unconditional lien waiver on progress payment?

Unlike a conditional waiver on progress payment, the unconditional waiver at progress payment does not promise you a fee for the services contracted by you towards your consumer as it releases your liability rights to the buildings as soon as you sign it. It does not matter any longer if you receive the payment by the through date mentioned on the form. The form itself mentions something to the tune that if you do not get the fee by the through date mentioned then it is not anybody’s obligation and that you would be forced to get a conditional waiver and release on a progress report form.

What’s the difference between and unconditional waiver conditional waiver on progress payment?

The biggest difference between the conditional waiver of progress payment and unconditional waiver of progress payment form format is that in the financial institution detail section of the unconditional waiver, you only need to fill up the amount that you are expected to receive. The business as well does not provide any space for claims for unpaid waivers unlike in the conditional waiver at a progress payment form. The unconditional waiver on progress payment will release the claimant’s right from the property of the client as soon as it is signed and will remain released despite non-payment of the full amount by the through date. Basically the unconditional waiver of progress payment will free the client from any stipulations and should not be signed unless and until the claimant trusts the client on payments from the past projects that were worked on together with them. This is almost like confirming that you have received the payment for the construction work done and are enforced to relinquish rights to the property even before you get the money for the work done. The conditional waiver of progress payment at least ensures payment by the through date mentioned on form even if it waives the right of the claimants to the projects as soon as they sign it.

When to use it?

The common recommendation is to never go for the unconditional waiver at progress payment as it does not protect the interest of the claimant. The waiver works to the advantage of the owner as he can make the payment to the claimant at whatever time he wishes to depend upon his/her financial situation. In cases like these where there is enough confidence in the client that the payment will come through eventually and there is no need to inevitably make him or her liable for unfulfilled payment via a specific date then this is a trustworthy waiver to sign.

Nov 03

What is conditional lien waiver on progress payment?

A lien waiver is a document developed to safeguard the benefit of the persons who provide with materials, labor and other services for the finish of a construction project. The petitioner, who is the person or a group of people who offered the materials, labor and other significant services specific to the project sign the waiver stating that they have approved the payment for the work accomplished by them and that they waive any liability rights to the property of the owner. The payment is usually done in a progressive form demanding no checks to be sent back or be stopped up. There are 4 types of waivers; first one is a conditional waiver of progress payment, second one is an unconditional waiver of progress payment, similarly the next two are: conditional waiver of final payment and unconditional waiver on final payment.

How it works?

Out of all of these, the conditional waiver on progress payment is considered to be the safest waiver as it will release all claimants’ rights via a specific date, mentioned on the form as “Through Date”, provided all the payments are cleared by the date that is mentioned. A conditional waiver and release on a progress payment form will incorporate the following details: The name of the claimant, the name of the owner, the job area, owner and the through date in the part of the form which deals with identifying info. The next part of the application will ask the owner to fill in the details of the financial institution such as the name of the bank at which the check was drawn, the amount the check is worth and the name of the person or organization to whom the check is payable to. Furthermore the next section could ask you the details of other waivers for which you haven’t received payment yet. They ask you to fill out the through date of the waivers and the exact amount to be paid. The last section will deal with the claimant’s signature, his or her title and the date of signature.

What are the advantages?

This document will assist you get payment for your services extended with surety as the through date set will ensure that the property built by your efforts is not released readily to its owner. The form is beneficial for all claimers as the fear of non-release of property is a strong one as far as the owner is concerned, he is very likely to give the money asked of him in the very beginning of the project readily to safeguard his interests. This document becomes more of a binding one that prevents anyone to default and be tied up in any sort of lawsuit.

Oct 19

Waiver of Lien – Step-by-Step Instructions

 

Easy to User & Complete. Simply follow the step-by-step instructions and enter the correction information in each area shown.

Click the image below to enlarge!

Lien Waiver Step-by-Step Instructions

Lien Waiver Step-by-Step Instructions

Mar 19

What Is A Lien Waiver?


A lien waiver is a form from a contractor, subcontractor or other parties to the construction to avoid future lien issue. Lien Waiver is used to protect the owners while the lien is used to protect the contractors/subcontractors/mechanics
 

Are you get stuck with a lien? Learn more about how to download a lien waiver, including what happens if you get involved with a lien issue, wait for it to expire. How to waive lien by getting a lien waiver? Failure to pay your lien could result in the Federal filing an IRS Tax Lien against you. Get a lien waiver so you won’t need to get involved with lien issue. Download Lien Waiver Form Now
Lien Waiver

Mar 19

Free Lien Waiver Form Download

To download the free lien waiver form in PDF format, please click Free Lien Waiver in the bottom.


CONTRACTOR’S AFFIDAVIT AND WAIVER OF LIEN
STATE OF____________________
COUNTY OF__________________
I, _____________________________ of _____________________________________________, being sworn, says he is the ____________________of ____________________________________________ (hereinafter referred to as the “Contractor” has finished all materials, labor, tools, equipment, construction facilities and everything of every sort and has performed all work required by the contract entered into with Public Storage, 701 Western Avenue, Glendale, CA 91201 (hereinafter referred to as “PS”) dated the _____day of ______________, 20___ pertaining to:
Property Address work performed at:________________________________________________________________________
Description of Work: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
The contractor has fully paid for all said materials, labor, tools, equipment, construction facilities and everything of every sort furnished by it, or by its subcontractors or material men, upon said premises and furnished therefore for said work.
The current amount due from PS, and unpaid to Contractor, is the sum of $______________, and upon payment to the Contractor of said sum, Contractor hereby waives all liens and claims against PS, its premises and property for said sum, and further, Contractor represents that no other person or party has right to a lien on account of any work performed for, or material furnished to Contractor for said work.
By: ___________________________________________________________
Contractors Federal Tax ID # ________________________________
Or
Sole Proprietor Social Security # _____________________________
BEFORE ME, the undersigned authority, on this day personally appeared ____________________ known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for purposes and consideration therein expressed, GIVEN under my hand and seal of office, this _____ of ______________, 20___.
My commission expires ____________ NOTARY PUBLIC: ____________________

To download the free lien waiver form, please click Free Lien Waiver.

Mar 19

Lien Waiver Template Download

To download the free lien waiver Template in PDF format, please click Lien Waiver Form in the bottom.


CONTRACTOR’S AFFIDAVIT AND WAIVER OF LIEN
STATE OF____________________
COUNTY OF__________________
I, _____________________________ of _____________________________________________, being sworn, says he is the ____________________of ____________________________________________ (hereinafter referred to as the “Contractor” has finished all materials, labor, tools, equipment, construction facilities and everything of every sort and has performed all work required by the contract entered into with Public Storage, 701 Western Avenue, Glendale, CA 91201 (hereinafter referred to as “PS”) dated the _____day of ______________, 20___ pertaining to:
Property Address work performed at:________________________________________________________________________
Description of Work: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
The contractor has fully paid for all said materials, labor, tools, equipment, construction facilities and everything of every sort furnished by it, or by its subcontractors or material men, upon said premises and furnished therefore for said work.
The current amount due from PS, and unpaid to Contractor, is the sum of $______________, and upon payment to the Contractor of said sum, Contractor hereby waives all liens and claims against PS, its premises and property for said sum, and further, Contractor represents that no other person or party has right to a lien on account of any work performed for, or material furnished to Contractor for said work.
By: ___________________________________________________________
Contractors Federal Tax ID # ________________________________
Or
Sole Proprietor Social Security # _____________________________
BEFORE ME, the undersigned authority, on this day personally appeared ____________________ known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for purposes and consideration therein expressed, GIVEN under my hand and seal of office, this _____ of ______________, 20___.
My commission expires ____________ NOTARY PUBLIC: ____________________

To download the lien waiver template, please click Lien Waiver Template.

Mar 19

Conditional Lien Waiver

To download the free lien waiver form in PDF format, please click Free Lien Waiver


Conditional waiver on progress payment

The conditional waiver on progress payment is considered to be the safest waiver as it will release all claimants’ rights through a specific date, mentioned on the form as “Through Date”, provided all the payments are cleared by the date that is referred to. A conditional waiver and release at a progress payment form will incorporate the following details: The name of the claimant, the name of the property owner, the job area, owner and the through date in the part of the form which deals with explanatory report. The next part of the application will ask the owner to fill in the details of the financial institution such as the name of the bank at which the check was drawn, the amount the check is worth and the name of the person or organization to whom the check is payable to. In addition the next portion could ask you the details of other waivers for which you haven’t received payment yet. They ask you to fill out the through date of the waivers and the exact amount to be paid. The last section will deal with the claimant’s signature, his or her title and the date of signature. Read More.

Conditional waiver on final payment

This lien waiver releases all owners rights to file a lien if they have fully been paid to date and that includes no return or stopped payment checks.

Download Lien Waiver Form Now

Lien Waiver

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