Conditional Final Lien Waiver Form for the United States

Conditional Final Lien Waiver Form Template for United States

A Conditional Final Lien Waiver Form is a legal document used in the United States construction industry that waives a contractor's or supplier's right to place a mechanics lien on a property, contingent upon receipt of final payment. The document provides protection for both the property owner and the contractor, ensuring that payment is received before lien rights are waived. The specific requirements and format may vary by state, with some jurisdictions requiring statutory forms.

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What is a Conditional Final Lien Waiver Form?

The Conditional Final Lien Waiver Form is a crucial document in U.S. construction law that protects both property owners and contractors during the final payment phase of a construction project. This document is typically used when a contractor or supplier is ready to receive their final payment and agrees to waive their right to file a mechanics lien, but only after the payment is actually received and cleared. The conditional nature of the waiver provides protection for the contractor while giving the property owner assurance that no future liens will be filed once payment is made. State laws often regulate the format and content of these waivers, with some jurisdictions requiring specific statutory forms.

What sections should be included in a Conditional Final Lien Waiver Form?

1. Project Information: Details of the construction project, including address and project name

2. Parties: Identification of contractor/subcontractor and property owner

3. Payment Amount: Specific amount received or to be received as final payment

4. Waiver Statement: Formal waiver of lien rights conditional upon payment

5. Scope of Waiver: Description of work or materials covered by the waiver

What sections are optional to include in a Conditional Final Lien Waiver Form?

1. Exceptions: List of any retained rights or claims not waived

2. Notarization Block: Space for notary acknowledgment

3. Warranty Statement: Warranties regarding work completed

What schedules should be included in a Conditional Final Lien Waiver Form?

1. Schedule A - Payment Details: Detailed breakdown of payment amounts and dates

2. Schedule B - Work Description: Detailed description of work or materials provided

3. Schedule C - Outstanding Claims: List of any retained or excepted claims, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Release of Lien

Cost

Free to use
Industries

State-Specific Mechanics Lien Laws: Each state has its own mechanics lien laws, with some states requiring statutory lien waiver forms. Validity requirements vary by jurisdiction and must be strictly followed.

UCC Provisions: Uniform Commercial Code provisions relating to waiver of rights must be considered when drafting lien waivers to ensure compliance with federal commercial standards.

Federal Bankruptcy Laws: Federal bankruptcy laws may affect the enforceability of lien waivers and must be considered in the drafting process to ensure the waiver remains valid in case of bankruptcy proceedings.

State Waiver Restrictions: State-specific restrictions on advance waivers, including whether they are prohibited, any mandatory notice provisions, and statutory waiting periods that must be observed.

State Form Requirements: State-mandated requirements for form validity, including required language, disclaimers, and notarization requirements specific to the jurisdiction.

Construction Law Provisions: State-specific construction law provisions governing the timing of waivers and specific rules differentiating between progress payments and final payments.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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