Advice When Using a Lien Waiver Template

Federal law gives construction crews the right to place a lien on a property until they receive payment in full for their work. This is an important protection for these companies, especially when they are working on a property the owner intends to sell. However, once the work is done and paid for, the owner needs to ensure that the lien is released properly, and a lien waiver template does just that.

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PDF Template - lien waiver and release

In This Section, We’ll Cover:


  • Parts of a Lien Waiver
  • Important Terms to Include in a Lien Waiver
  • When to Use a Lien Waiver
  • Lien Waiver Best Practices
  • Collecting Signatures

Parts of a Lien Waiver

A lien waiver releases the claim on an item after the payment of a fee for construction services. Some important parts to include to make a lien waiver legally binding include:

  • Amount collected
  • Names of the contractor and property owner
  • Description of the item and work performed
  • Location of the property
  • Signature of both parties
  • Address of both parties
  • Witness or notary public signature
  • State and County where the waiver is signed

Important Terms to Include in a Lien Waiver Template

As you customize a lien waiver template, make sure it is thorough and appropriate for the scope of work performed on your property. To do so, make sure the lien waiver includes:

  • Release of all claims on the item or property in return for the amount paid.
  • Agreement that the payment amount is sufficient to remove and liens on the property.
  • Dates that match the dates the work was completed.
  • Proper signatures, including a notary if required in your state. Use Nitro Sign to get those signatures simply and quickly.

When to Use a Lien Waiver Template

Any time construction work is performed on a property, the construction crew has the legal right to place a lien on the property until the bill is paid. This protects the construction team from having the property sold while there is still an outstanding bill. The lien waiver removes that lien right after the work is completely paid for. Any time you are paying for construction work on a property, you should have a lien waiver signed to ensure you have a legal document stating the bill has been fully paid. With Nitro Sign, collecting signatures is simple.

Lien Waiver Best Practices

When sending or signing a lien waiver, use a lien waiver template to ensure it is legal and ethical. Make sure the payment amount is clear and accurate. Also, make sure the project is clearly documented in the waiver. This will prevent any problems in the future should the property owner or the construction crew have a dispute.

Lien waivers are governed by both state and federal laws. Before signing one, make sure you are following your state regulations. Some states, for instance, require notary signatures, while others do not. If your waiver does not follow your state regulations, it will not be legally binding.

Collecting Signatures on a Lien Waiver Template

Before a lien waiver is binding, it must be properly signed by the construction company, the property owner and a witness or notary. Use Nitro Sign to more quickly send these documents and collect the necessary signatures in a secure, online environment. You can try Nitro Sign for free to see how easy the process is.

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