What is a lien waiver?

A lien waiver is a legal document that a contractor, subcontractor, or supplier submits to relinquish their right to file a lien against a property for work completed or materials supplied. When the lien waiver is signed, it typically indicates that the contractor has been paid for their work up to that point and agrees not to pursue a lien for that specific payment. This is significant in construction and remodeling projects, as it helps protect property owners from potential legal claims related to unpaid work, ensuring that they have clear title to their property.

This process often involves progressive lien waivers for each stage of payment, ensuring that parties involved in a renovation or construction project are legally bound regarding payment and rights to claim a lien. In this context, having a lien waiver can be essential for maintaining good business relations between contractors, subcontractors, and property owners, facilitating smoother transactions as work progresses on a project. The other choices do not accurately represent the nature of a lien waiver, as they refer to different documents or processes unrelated to lien rights.