Maryland Unconditional Lien Waiver on Final Payment

Unconditional Waiver and Release of Lien on Final Payment

In Maryland, mechanic's liens are governed under Chapter 9 of the Maryland Real Property Code. The term "waiver" refers to giving up a legal right. In this case, the person granting the waiver is giving up 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. Maryland does not use statutory forms for waivers; according to the principles of contract law, the parties may agree to such modifications in writing. Maryland law, however, specifically prohibits any waiver requirement in a contract. Md. Real Prop. Code sections 9-113.

Typically, waivers come in four varieties: unconditional after a progress payment, unconditional after the final payment, conditional after a progress payment, and conditional after the final payment. Unconditional means the waiver is granted immediately, while conditional waivers depend on the property owner meeting specific requirements (conditions), such as the payment clearing the bank, before the waiver takes effect. So, unconditional waivers benefit the owner, and conditional waivers tend to favor the claimant. The payment distinctions are based on the amount due on the project, so progress payment refers to money paid on account, and final payment waivers are used once the balance is paid in full.

A valid lien waiver identifies the parties, the location of the project, relevant dates and payments, and any other information necessary for the specific transaction. After signing the form, the claimant records it with the local agency responsible for maintaining land records.

Use the final unconditional waiver when a full and final payment is made and collectability of the due amount is not an issue. Only grant an unconditional waiver when payment is made through a verified method. The waiver is effective up to the full amount due and the claimant waives any lien rights without condition.

This article is provided for informational purposes only and should not be relied upon as a substitute for the advice from an attorney. Please contact a Maryland construction law attorney with questions about waivers or anything else about mechanic's liens.

Deeds.com Maryland Unconditional Lien Waiver on Final Payment Forms Have Been Updated as Recently as Friday May 17, 2019

4.7 out of 5 (568 Reviews)

What others like you are saying:

Cherene K. said: The process was easy and reasonable. My only problem was that, when I filled out my form on the computer, the writing I did overlapped with the pre-written words on the form, so that I had to end up doing it by hand. I've used DEEDS before and have not had that problem.

Reply from Staff: Thank you for your feedback Cherene. We've emailed you for some followup regarding the issue you reported.

Veronica F. said: Im so happy with this site. It was quick and painless and worth the money hassle free if I ever need to settle another deed I will be back.

Reply from Staff: Thank you Veronica, we really appreciate your feedback.

Rebecca Q. said: Very helpful! Unfortunately, they didn't have what I needed, but they got back to me quickly and didn't charge me anything. Easy to work with.

Reply from Staff: Thank you for your feedback. We really appreciate it. Have a great day!

Robert B. said: Everything worked Fine. I wish there was an John Doe type of an example for the Tax form.

Reply from Staff: Thank you!

Martha B. said: Not too hard to do, I did get it checked out by an attorney after I completed it just to be safe. He said it was fine, made no changes.

Reply from Staff: We appreciate your business and value your feedback. Thank you. Have a wonderful day!

Laurie F. said: I am so glad I found Deeds.com. You had exactly what I needed and made it easy to download. I have bookmarked you in the event of further inquiry. Thank you.

Reply from Staff: We appreciate your business and value your feedback. Thank you. Have a wonderful day!