Lien waivers are quid-pro-quo arrangements between contractors and owners. The purpose of such waivers is to induce payment from an owner in return for the contractor waiving some or all available mechanic's lien rights. If the correct waivers are used, they offer advantages for both a contractor and owner.

In Virginia, any right to file or enforce any mechanics' lien may be waived in whole or in part at any time by any person entitled to such lien, except that a subcontractor, lower-tier subcontractor, or material supplier may not waive or diminish his lien rights in a contract in advance of furnishing any labor, services, or materials. Va. Code 43-3(C). A provision that waives or diminishes a subcontractor's, lower-tier subcontractor's, or material supplier's lien rights in a contract executed prior to providing any labor, services, or materials is null and void. Id.

The Virginia legislature does not mandate a required form of a lien waiver, so common law principles of contract allow for the parties to use any form that clearly spells out their intentions. Note that it is a felony for any person to knowingly present a waiver form to an owner, his agent, contractor, lender, or title company for the purpose of obtaining funds or title insurance if the person forges or signs the form without authority. Va. Code. 43-13.1.

Waivers fall under two broad categories of "conditional" and "unconditional," and there are two subcategories of waivers for a "partial" or "final" payment. Each type comes with benefits and risks, so take care to use the correct form for the situation.

A conditional waiver depends on the actual receipt of payment, so use a conditional waiver when a party pays with a check but the claimant doubts whether it might clear. Therefore, if the check doesn't clear the bank, it is still possible to claim a lien down the line. This type of waiver offers greater protection to the contractor.

Use a full waiver on final payment when the fees/debt is completely paid. So, this might be the appropriate form for a situation where the owner submitted a check for the balance due, but the claimant wants to preserve the right to claim a lien until after the check clears the bank.

In this way, waivers can facilitate the flow of business and encourage prompt payment without any unnecessary holdups.

This article is provided for informational purposes only and should not be relied upon a substitute for the advice of an attorney. For any questions about Virginia lien waivers, please speak with a lawyer.

How to Use This Form

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Have the document notarized if required
Record with your county or independent city recorder's office

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Common Uses for Conditional Lien Waiver on Final Payment

Document consent of the property owner for improvements
Document a lien waiver upon receipt of progress payment
File a lien for unpaid construction or renovation work
File a lien to prevent property sale until payment is received
Protect subcontractor payment rights on a building project
Notify a general contractor of unpaid subcontractor invoices
Protect your right to payment for home improvement work

Compare other Virginia deed forms and documents

Quitclaim Deed Gift Deed Gift Deed Special Warranty Warranty Deed Special Warranty Deed Grant Deed Correction Deed Easement Deed Termination of Easement Special Power of Attorney for the Purchase of Property Special Power of Attorney for the Sale of Property Deed of Trust and Promissory Note Certificate and Affidavit of Satisfaction of Deed of Trust Certificate of Partial Satisfaction of Deed of Trust Transfer on Death Deed Transfer on Death Revocation Transfer on Death Beneficiary Affidavit Personal Representative Deed Real Estate Affidavit Trustee Deed Certificate of Trust Mineral Deed Quitclaim Mineral Deed Corrective Affidavit Mechanics Lien Preliminary Notice General Contractor Memorandum for Mechanics Lien Subcontractor Memorandum for Mechanics Lien Sub-subcontractor Memorandum for Mechanics Lien Conditional Lien Waiver on Partial Payment Unconditional Lien Waiver on Partial Payment Unconditional Lien Waiver on Final Payment Disclaimer of Interest Memorandum of Lis Pendens

Important: County or Independent City-Specific Forms

Our conditional lien waiver on final payment forms are specifically formatted for each county or independent city in Virginia.

After selecting your county or independent city, you'll receive forms that meet all local recording requirements, ensuring your documents will be accepted without delays or rejection fees.

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