Mechanics & (Sub) Contractor Lien Waiver
Mechanics Lien Waiver & (Sub) Contractor Lien Waiver
A particular term such as contractor lien indeed has been familiar to everyone. However, some people don’t know yet about the real meaning of contractor lien waiver, the types, and many other important things. What is a mechanic’s lien, exactly? It’s a property security interest. The one who gets this benefit is any people who have supplied materials, labor, or anything that increase the property value. The lien occurs for both personal and real property. A construction lien is the most common name used in the real property realm. Also, some people call it supplier’s lien when discussing people who supply labor to that property. Those who contribute an architecture design to the property is called professional’s lien.
In the personal property realm, it’s named an artisan’s lien. This term is obtained from a French word “liaison”. How does it work, actually? Those who want to get it must know the requirements beforehand. The supplier or subcontractor should provide notice to the property owner of the contribution. It’s usually around a month of contribution. What if the supplier doesn’t get the payment? They only need to file a mechanic’s lien claim in where the house or property is located. Typically, the supplier has 2-6 months to get it done with the owner. Otherwise, they may file a lawsuit.
Lien Waivers Types
In the process of mechanics lien, there’s a document called lien waiver. It’s created by a contractor, materials man, subcontractor, or others to the claimant. The document states they have accepted payments. However, there are 4 different lien waivers types out there.
Conditional Waiver Ongoing Payment
It’s the safest one among the others. It generally states that if they can use the waiver as a crucial proof against any property lien claim if they have been pain including stopped payment and no return checks. People can use this document when the claimant needs to sign a release and waiver. It’s helpful when the claimant doesn’t get the payment yet.
Unconditional Waiver Ongoing Payment
This document exposes the entire rights of claimants through a particular date entirely. This also includes stopped payment and no return checks. Still, this release won’t cover the entire items.
Conditional Waiver and Release on Final Payment
Like the name implies, this type of waiver discharges the entire rights of the claimants to file the lien if they have received the payment to date. People can use this document if they have the payment proof or evidence to the claimant. Payment written acknowledgment given by the claimant can be used as evidence, actually.
Unconditional Waiver on Final Payment
Property owners really like this type of waiver. They consider it as the safest. This may release all claimants’ rights to file a mechanics lien on them unconditionally. Claimants must provide a release only when they feel confident with their work. They also need to ensure the payment has been done.