LIEN WAIVER Meaning and
Definition
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A lien waiver is a legal document that relinquishes or waives a party's rights to claim a lien against a property or asset for payment. It is typically used in the construction industry, where contractors and subcontractors can file mechanics’ liens as a means of protecting their interests and ensuring payment for work performed or materials supplied.
When a lien waiver is provided, it signifies that the party releasing the lien rights has been adequately compensated for their contributions and no longer has a claim to the property. It commonly includes a description of the property, the party issuing the waiver, the party receiving the waiver, the amount being waived, and the date of the waiver.
There are typically four types of lien waivers: conditional progress waiver, conditional final waiver, unconditional progress waiver, and unconditional final waiver. Conditional waivers are usually given when the parties have reached an agreement but the payment has not yet been received. Unconditional waivers, on the other hand, are issued when the payment transaction has been successfully completed.
Lien waivers serve as important legal protection for property owners, ensuring that construction projects can proceed without the threat of potential liens. They also provide assurance to lenders and title companies that any existing or potential claims against the property have been effectively released. Overall, lien waivers promote transparency, trust, and clarity in construction projects by ensuring that all parties are adequately compensated and conflicts are swiftly and legally resolved.
Common Misspellings for LIEN WAIVER
- kien waiver
- pien waiver
- oien waiver
- luen waiver
- ljen waiver
- lken waiver
- loen waiver
- l9en waiver
- l8en waiver
- liwn waiver
- lisn waiver
- lidn waiver
- lirn waiver
- li4n waiver
- li3n waiver
- lieb waiver
- liem waiver
- liej waiver
- lieh waiver
- lien qaiver
Etymology of LIEN WAIVER
The word "lien" originated from the Old French term "lien" meaning "bond" or "tie". It has its roots in Latin "ligamen" meaning "a band" or "bond".
The word "waiver" has English origins and is derived from the Old Norse word "vefr", meaning "a pledge" or "a guarantee".
When combined, the term "lien waiver" represents a legal document or instrument that releases or relinquishes the right to impose a lien on a property.
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