The Mechanic's Lien Waiver document should be used when a party (the "Lienholder") has furnished labor and/or materials and has received or is about to receive payment for the services. In exchange for the payment, the Lienholder agrees to waive (release) any lien or other claim that the Lienholder may have against the improved property. Even if the Lienholder has already received full payment for all work and materials, the owner may still wish to acquire a Waiver to confirm that those payments have been made and that therefore the Lienholder makes no claim against the property. Most states require that a release of a statutory lien must be done in writing to be effective. Therefore, the use of this document serves as tangible evidence that the Lienholder waived/released its right to a lien. This document should not be used if the Lienholder has already filed an instrument to enforce its lien or claim. For example, if the Lienholder has filed a Notice of Mechanic's Lien with a local court, this document is not the appropriate document to dismiss the court action. If you are involved in a court proceeding regarding a mechanic's lien, you should contact an attorney. |