Lien Waiver

A Lien Waiver is a document signed by a subcontractor, supplier, or laborer waiving their right to file a mechanic's lien against a property in exchange for payment. Lien waivers come in four flavors: conditional vs unconditional, and progress vs final. A 'conditional' waiver only takes effect when payment clears, while an 'unconditional' waiver is effective on signature. 'Progress' waivers apply to an interim payment; 'final' waivers apply to the last payment and release all future lien rights. GCs typically collect lien waivers alongside every pay application to maintain a clean chain of title.