Skip to main content

What is a Lien Waiver?

December 22, 2022
person in orange long sleeve shirt writing on white paper

A lien waiver is a document that is signed by a contractor, subcontractor, or supplier (also known as the "lienor") in which the lienor gives up the right to place a lien on a property for unpaid work or materials. Liens are a legal mechanism that allow contractors and other parties who have provided labor or materials to a construction project to secure payment for their work. If a lienor is not paid, they can file a lien on the property as collateral until they receive payment.

Lien waivers are commonly used in the construction industry to protect property owners and ensure that they are not held responsible for paying for work or materials that have not been paid for by the contractor. Lien waivers are typically provided by the lienor to the property owner or to the party paying for the work (such as a lender or an escrow company) as evidence that the lienor has been paid in full or has waived their right to file a lien.

There are different types of lien waivers, including conditional and unconditional waivers.

Conditional waivers are typically used before payment is made and are effective only when payment is received.

Unconditional waivers are used after payment has been made and waive the lienor's right to file a lien regardless of whether payment has been received.

It is important to carefully review lien waivers to ensure that they are properly executed and that the terms and conditions are clearly understood before signing.