Baltimore City Unconditional Lien Waiver on Final Payment Form

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Cities and Jurisdictions in Baltimore City

Properties in any of these areas use Baltimore City forms:

• Baltimore
• Brooklyn

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.

Important: Your property must be located in Baltimore City to use these forms. Documents should be recorded at the office below.

This Unconditional Lien Waiver on Final Payment meets all recording requirements specific to Baltimore City.

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The documents you receive here will meet, or exceed, the Baltimore City recording requirements for formatting. If there's an issue caused by our formatting, we'll make it right and refund your payment.

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