What Is a Lien Waiver?
Not the easiest term to pronounce, a lien waiver is a legal document that is used in the construction industry as a receipt of payment from a contractor, subcontractor, materials supplier, or other party involved in a construction project. The waiver serves as a proof that the party has received payment and consequently waives any future lien rights to the property.
A construction lien waiver is a critical tool that helps maintain a clear and smooth operation in construction projects. It protects the property owner from the risk of a lien being placed on their property due to unpaid debts by any of the parties involved in the construction project.