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A lien waiver is used by a contractor or subcontractor generally in two instances. The first is they've filed a lien on someone's property (such as a home or vehicle) because the contractor wasn't paid for their services. When they are paid, they use a lien waiver to release the lien and waive the right to file a lien for that amount for that work in the future. In this instance, a lien waiver is like an acknowledgement of being paid for services. A lien waiver is also used when the contractor was paid for services and no lien was filed. In this instance, the contractor is waiving their right to file a lien for that amount of payment for that specific job in the future.
A lien waiver is used by a contractor or a subcontractor to release a lien on property of some type once they've been paid for their services or to waive their right to file a future lien in the amount of what they were paid for their services. A lien waiver is only used if a lien was filed against the property because of non-payment. Liens can be placed against different types of property including real estate property and automobiles. The lien waiver states that the contractor or subcontractor has been paid in full and that they waive their future right to file a lien for the amount that was paid to them.
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Alternate Names:
A lien waiver is used to remove a lien when payment is received from the client to the contractor or when the contractor is paid in advance and the contractor is waiving their right to file a lien for that specific job (in that specific amount) in the future.
You should use a lien waiver if you've filed a lien against the property of another person because you did not receive payment for performing certain services. You should use a lien waiver if you've been paid for your services in full so that you can assure your client that you have no intention of filing a lien for the work in the future.