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Iowa Conditional Lien Waiver on Final Payment

Mechanic's liens are governed under Chapter 572 of Iowa Code. A waiver is a conscious relinquishment of a right. In this case, the person granting the waiver is relinquishing the right to seek a mechanic's lien for all or part of the amount due. This assurance is usually enough to get the other party to pay. In Iowa, there are no statutory forms for waivers although according to the principles of contract law, the parties may agree to such modifications in writing.

Generally, waivers come in four varieties: conditional or unconditional, and based on a partial/progress or final payment. Conditional waivers only become effective after the responsible party's check clears the bank on which it was drawn, and provide more protection for the claimants. Unconditional waivers go into effect immediately, tend to favor the owners' interests, and should only be used after payment is confirmed. Waiving lien rights after a partial payment allows the claimant to retain some lien rights, but to release others based on the amount paid on the overall balance due. Waivers upon final payments remove the claimant's eligibility to place a lien because they state that the account is paid in full.

Regardless of the nature, waivers must identify the parties, the location of the project, relevant dates, and payments.

Claimants might use a final conditional waiver when the full and final payment is made, but concerns exist about the payment method. For instance, if there are any concerns a final check won't clear, opt for a conditional waiver. The waiver is only effective upon the payment going through within a specified number of days.

This article is provided for informational purposes only and should not be relied upon as a substitute for the advice from a legal professional. Please contact an Iowa attorney with any questions about sending notice to property owners or anything else with regard to mechanic's liens.

Deeds.com Iowa Conditional Lien Waiver on Final Payment Forms Have Been Updated as Recently as Friday November 27, 2020

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Iowa Conditional Lien Waiver on Final Payment Form