Lien waivers are used between contractors and property owners as a quid-pro-quo arrangement to induce payment from an owner in return for the contractor waiving some or all available mechanic's lien rights. If the appropriate waivers are used, they offer advantages for both the contractor and the 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.

An unconditional waiver becomes effective when presented to the owner or other party, regardless of whether or not the payment is valid. If you unconditionally waive a lien, you can still sue on a breach of contract or other legal theory, but that is no substitute for the protections and ease of a mechanic's lien in recovering any money owed. An unconditional waiver gives an owner more protection while taking away some rights from the contractor.

Only use an unconditional final waiver AFTER receiving the final or full payment.

So, when used properly, waivers can facilitate the flow of business and encourage prompt payment.

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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Download the county or independent city-specific form
Fill in the required information
Have the document notarized if required
Record with your county or independent city recorder's office

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Common Uses for Unconditional Lien Waiver on Final Payment

Protect a contractor's right to payment for work performed
Provide notice of intent to file a lien for unpaid work
Establish a legal claim against property for unpaid labor
Protect your right to payment for home improvement work
Document partial payment received on a construction project

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 Conditional Lien Waiver on Final Payment Disclaimer of Interest Memorandum of Lis Pendens

Important: County or Independent City-Specific Forms

Our unconditional 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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