Virginia Conditional Lien Waiver on Partial Payment

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 October 14, 2019

4.7 out of 5 (910 Reviews)

What others like you are saying:

Renasha P. said: I was searching information about my boyfriend family home and received the results in a timely manner. I now have the information that we were seeking.

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

Susan T. said: This was perfect for my county I will be recommending your forms to all my clients thank you.

Reply from Staff: Thank you Susan, have a great day!

Shawn H. said: The site provided exactly what I needed when I needed it.

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

Joseph L. said: Very easy to fill out and and saved a lot of extra cost by doing it ourselves and getting it notarized.

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

Robert M. said: Got the documents needed.. simple to use!!!

Reply from Staff: Thank you Robert, we appreciate your feedback. Have a great day.

Martin P. said: The DEEDs website is very easy to navigate and find the required documents. I have not yet had an opportunity to review the documents I purchased and downloaded. That is the reason I have assigned a rating of four stars. I fully hope that can raise my rating to five stars after I've used those documents.

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