Lien Waivers: Everything You Need To Know

In all 50 U.S. states, certain contractors, subcontractors, sub-subcontractors, materialmen, and service providers are entitled to place a mechanic's lien on real property where they performed work and/or provided supplies. To protect themselves against mechanic's liens, project owners often require potential lien claimants to provide lien waivers and releases as they complete and are paid for work on a project. However, owners must tread carefully because overbroad releases present risks and many states will void lien waivers that are inconsistent with the requirements of their lien statutes.

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