A lien waiver requires a property owner’s name, the owner’s signature, the current date, and a description of the property being constructed or service being rendered. The lien also requires the construction company’s name, current date, and the signature and title of the contractor or subcontractor doing the work. Describe adequately in the document any service or work supplied by an individual or contractor.Know More
According to Rocket Lawyer, a contractor has a right to put a lien on a property when a person does not pay for work the contractor has done. A lien waiver states that a contractor has been paid in full and releases any lien or claim that he has against the property worked on.
There are four types of lien waivers: conditional waivers on progress payment, unconditional waivers on progress payment, conditional waivers on final payment, and unconditional final waivers for final payment. Lien waivers on progress payments state that as long as a contractor has been paid to date, then he releases any right to a lien on the property. A lien waiver on final payment states that a contractor releases a right to a lien on the property only upon receipt of full and final payment.Learn more about Credit & Lending
A lien on a vehicle is a legal contract that allows the financial lender the right to repossess a vehicle if the borrower does not make any effort to pay back the monies owed for the vehicle. Banks and financial institutions use liens as insurance.Full Answer >
There are two types of conditional lien waivers: a conditional waiver and release upon progress payment and a conditional waiver and release upon final payment, explains Investopedia. The former prevents action on a mechanic's lien provided payments are kept current; the latter prevents action after final payment with certain provisions.Full Answer >
Standard lien waiver forms are documents provided by the American Land Title Association, or ALTA, that are used for documenting and discharging liens, states HOA Leader. Apart from ALTA, these forms are available at most title insurance companies.Full Answer >
A free sample lien release can be obtained from the Free Legal Documents Project. The sample lien release serves as a simple example of how a lien release should appear. Whenever possible, as much detail specific to the transaction should be included in the form.Full Answer >