Lien waivers are quid-pro-quo arrangements between contractors and owners, intended to induce payment from an owner in return for the contractor waiving some or all available mechanic's lien rights.
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).
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 it when a party pays by check, but the recipient is not sure that it will clear. Therefore, if the bank returns the check unpaid, it is still possible to claim a lien down the line. This type of waiver offers greater protection to the contractor.
Use a partial payment waiver to acknowledge a payment on account. Think of it as a receipt that shows the owner has at least paid up to that amount.
So, a conditional waiver on partial payment releases the claimant's lien rights, to an agreed-upon point, on the condition that the check clears at the bank.
When used properly, waivers are advantageous for both a contractor and owner, and can facilitate the flow of business and encourage prompt payment without any unnecessary delays.
This article is provided for informational purposes only and should not be relied upon a substitute for the advice of an attorney. Please contact a lawyer with any questions about Virginia lien waivers.
Deeds.com Virginia Conditional Lien Waiver on Partial Payment Forms Have Been Updated as Recently as Monday June 17, 2019
What others like you are saying:
Jackson J. said: Thank you for your help the website is simple and easy to use and dealing with this county for the 1st time there were a few things i was not too sure about but your staff was prompt and responsive and anytime there was a glitch we were promptly able to resolve the issue until the deed was accepted and recorded by the county great service thanks again.
Reply from Staff: We appreciate your business and value your feedback. Thank you. Have a wonderful day!
Tanya D. said: No review provided.
Randy R. said: Thank you So far everything worked great. Got my downloads so I'm off and running. I hope the rest of the paperwork goes this easy.
Reply from Staff: Thank you Randy, we appreciate your feedback.
James W. said: Easy access to forms saving lots of time researching reqmts from a State/Municipal Govt website. I saved 400-500 in lawyer fees but getting these forms, and coordinating with the Property recorders office in another state. Will use you again.
Reply from Staff: Thank you James. We really appreciate your feedback.
Lindsay B. said: The form was easy to fill out. The only problem I had was on the Notary page I live in a different state than the property and I couldn't change the name of the state or county where the notary had to sign.
Reply from Staff: Thanks Lindsay, we appreciate your feedback.
mary g. said: Easy site. Reasonably priced
Reply from Staff: Thank you Mary.
Select County or Independent City where the property is located.