In the

mechanics lien A mechanic's lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The lien exists for both real property and personal property. In the realm of real property, ...

process, a

lien A lien ( or ) is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the ''lienee'' and the pers ...

waiver A waiver is the voluntary relinquishment or surrender of some known right or privilege. Regulatory agencies of state departments or the federal government may issue waivers to exempt companies from certain regulations. For example, a United St ...

is a document from a contractor,

subcontractor A subcontractor is an individual or (in many cases) a business that signs a contract to perform part or all of the obligations of another's contract. Put simply the role of a subcontractor is to execute the job they are hired by the contractor f ...

, materials supplier, equipment lessor or other party to the construction project (the claimant) stating they have received

payment A payment is the voluntary tender of money or its equivalent or of things of value by one party (such as a person or company) to another in exchange for goods, or services provided by them, or to fulfill a legal obligation. The party making the p ...

and waive any future lien rights to the property (of the owner) for the amount paid. There are typically four types of lien waivers: *Conditional waiver on progress payment – The ''safest'' waiver for claimants, this waiver generally specifies that ''if'' they have indeed been paid to date (and that includes no return or stopped payment checks) the waiver is an effective proof against any lien claim on the property. *Unconditional waiver on progress payment – This waiver releases all claimant rights through a specific date unconditionally (and that includes no return or stopped payment checks). *Conditional waiver on final payment – This waiver releases all claimant rights to file a mechanics lien ''if'' they have indeed been paid to date (and that includes no return or stopped payment checks). *Unconditional final waiver final payment – The ''safest'' waiver for owners, this waiver generally releases ''all'' rights of the claimant to place a mechanics lien on the owners property unconditionally. ''It is immaterial if the payment check has been returned or stopped payment''. Claimants should issue this type of release only when they are positive their work is done and the payment has cleared their bank. Owners should demand this release when they are paid in full. Some states allow an Unconditional Release upon final payment that is used to induce the final payment. It is an inherent vagary in the lien release law. In the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

, some states only use a conditional waiver on progress payment and an unconditional waiver on final payment. The mechanics lien process can be of great value to claimants in enforcing their claims, if done according to the laws of the various states, or the

federal government A federation (also known as a federal state) is a political entity characterized by a union of partially self-governing provinces, states, or other regions under a central federal government (federalism). In a federation, the self-governin ...

. These parties are entitled to be paid for their material or labor contributions to the improvement of real property. Most forms for the process can be obtained from local office supply stores, and a few

computer program A computer program is a sequence or set of instructions in a programming language for a computer to execute. Computer programs are one component of software, which also includes documentation and other intangible components. A computer program ...

s exist to handle the process on a nationwide basis.

References

{{Reflist Property law