Washington Conditional Waiver and Release of Claim upon Progress Payment

Washington Conditional Waiver and Release of Claim upon Progress Payment Information

Contractors who have already recorded a lien against real property may use a conditional waiver and release of claim upon progress payment to surrender a portion of their reserved lien rights in exchange for, or to encourage, payment on a balance due.

Washington law requires a lien release upon payment and acceptance of the amount due to the lien claimant and upon the demand of the owner or the person making payment. R.C.W. 60.04.071. If a claimant fails to provide a waiver or release when one is due, the owner can pursue legal action to compel deliverance of the release and if the court determines the delay was unjustified, the court can, in addition to ordering the deliverance of the release, award the costs of the action including reasonable attorneys' fees and any damages. Id.

Given in exchange for full or partial payments, mechanic's lien waivers can be useful at various points during the construction/improvement process. Waivers can also lead to confusion, however, and issuing the wrong kind of waiver (or issuing one too early) can cause dire consequences for the mechanic's lien claimant. Washington's statutes do not provide for any required forms of lien waivers, but contractors may issue their own lien releases, generally under R.C.W. 60.04.071.

There are four main types of lien waivers to choose from, depending on the circumstances of the job. These include: (1) Conditional Waiver and Release of Claim of Lien upon Progress Payment, (2) Conditional Waiver and Release of Claim of Lien upon Final Payment, (3) Unconditional Waiver and Release of Claim of Lien upon Progress Payment, and (4) Unconditional Waiver and Release of Claim of Lien upon Final Payment.

A conditional waiver becomes effective when the payment clears the bank. As such, contractors use this kind of waiver while waiting for payment, or if they need confirmation about the payment method (such as a check). Unconditional waivers take effect when delivered to the property owner. If a lien claimant issues an unconditional waiver and the owner fails to pay or the check bounces, the person receiving the waiver may be freed from all or part of the mechanic's lien obligation without the proper payment. In these situations, the only other remedy may be a costly lawsuit.

Regardless of the terms, waivers must at least identify the claimant, the owner or person responsible for payment, payment amount, the relevant dates, and include the claimant's signature.

Contact an attorney with questions about lien waivers or any other issue relating to liens in Washington.

Deeds.com Washington Conditional Waiver and Release of Claim upon Progress Payment Forms Have Been Updated as Recently as Wednesday February 22, 2023

4.8 out of 5 (3959 Reviews)

What others like you are saying:

Claudia S. said: The site is very user friendly. Where can I get a copy of all the invoices that were paid? Thank you. Claudia

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

Michael T. said: Good site. Two things to note. 1. The Documentary Transfer Tax Exemption sheet, the word "computer" is used when I think it should be "computed" Error in state form? 2. The California Trust Guide could have a watermark which is less distracting. Kind of hard to read the print with the DEEDS.COM logo so prominent.

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

Alison L. said: Wonderful and easy to use platform. I was using a more complicated platform that wouldn't load half the time. Makes for filing deeds in the pandemic quick and easy.

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

Cindy A. said: Easy to understand and use. However, need to add line for phone number for preparer - Thanks

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

Glenn W. said: I love this tool and it is easy to work with. The interface is straight forward and notifications are consistently accurate.

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

leila m. said: Very good service, friendly customer service I absolutely will use the service again

Reply from Staff: Thank you!