What is a lien waiver used for?

construction projects:

A lien waiver is a legal document that a contractor or subcontractor signs to waive their right to place a mechanic's lien on a property. This waiver is typically requested by a property owner or general contractor as a way to protect themselves from potential payment disputes.

There are two main types of lien waivers: conditional and unconditional. A conditional waiver is signed before payment is received, with the understanding that the waiver will become effective once the payment has cleared. An unconditional waiver, on the other hand, is signed after payment has been received and effectively releases the lien rights immediately.

Lien waivers are an important part of the construction process, as they help prevent delays and disputes over payment. It is crucial for all parties involved in a construction project to understand the terms of the lien waiver and ensure that it is properly executed to protect their rights and interests.