A lien waiver is used during the mechanic’s lien process to let a claimant party (usually a contractor, subcontractor or supplier) let another party (usually the owner) know that they have received payment and therefore waive any future lien rights to the property.
If you hire a general contractor to expand or remodel your home, be sure to ask for a lien waiver(s) from the contractor(s) and any major subcontractors as each subcontractor finishes their portion of the job. The contractor should also be able to provide waivers from major suppliers of materials delivered to the construction site (i.e. lumber yard). Always be sure to have all lien waivers signed at time of final payment to the contractor.
This means a lien waiver will protect you in case your contractor fails to pay subcontractors. Without a lien waiver, any builder, material supplier or subcontractor who wasn't paid by the contractor, can place a lien on your property. A property lien makes you, not the contractor, responsible for their payment: even if you already paid for the main contractor for the work.
Most commonly, the lien waivers are signed after the contractor or subcontractor has received payment for all or a portion of its work.
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MN Lien Waiver PDF: http://www.commerce.state.mn.us/UCB/40.5.1.pdf
If you hire a general contractor to expand or remodel your home, be sure to ask for a lien waiver(s) from the contractor(s) and any major subcontractors as each subcontractor finishes their portion of the job. The contractor should also be able to provide waivers from major suppliers of materials delivered to the construction site (i.e. lumber yard). Always be sure to have all lien waivers signed at time of final payment to the contractor.
This means a lien waiver will protect you in case your contractor fails to pay subcontractors. Without a lien waiver, any builder, material supplier or subcontractor who wasn't paid by the contractor, can place a lien on your property. A property lien makes you, not the contractor, responsible for their payment: even if you already paid for the main contractor for the work.
Most commonly, the lien waivers are signed after the contractor or subcontractor has received payment for all or a portion of its work.
http://formsguru.com/
MN Lien Waiver PDF: http://www.commerce.state.mn.us/UCB/40.5.1.pdf
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