Lien waiver

In the mechanics lien process, a lien waiver is a document from a contractor, subcontractor, materialmen, equipment lessor or other party to the construction project stating they have received payment and waive any future lien rights to the property. There are typically four types of lien waivers:

*Conditional waiver on progress payment - The "safest" waiver for claimants, this waiver generally specifies that "if" they have indeed been paid to date (and that includes no return or stopped payment checks) the waiver is an effective proof against any lien claim on the property.
*Unconditional waiver on progress payment - This waiver releases all claimant rights through a specific date unconditionally (and that includes no return or stopped payment checks).
*Conditional waiver on final payment - This waiver releases all claimant rights to file a mechanics lien "if" they have indeed been paid to date (and that includes no return or stopped payment checks).
*Unconditional final waiver final payment - The "safest" waiver for owners, this waiver generally releases "all" rights of the claimant to place a mechanics lien on the owners property unconditionally. "It is immaterial if the payment check has been returned or stopped payment". Claimants should issue this type of release only when they are positive their work is done and the payment has clear their bank. Owners should demand this release when they are paid in full.

In the United States some states only use a conditional waiver on progress payment and an unconditional waiver on final payment.

The mechanics lien process can be of great value to contractors, subcontractors, materialmen and other related parties to a construction work in enforcing their claims, if done according to the laws of the various states, or the federal government. These parties are entitled to be paid for their material or labor contributions to the improve of real property. Most forms for the process can be obtained from local office supply stores, and a few computer programs exist to handle the process on a nationwide basis.