ECN Forum Forums General Topics of the Trade Business Related Discussion Waiver of Lien

iwire,
A lien waiver is a document stating that you have been paid and release your right to lien the property. If you haven't been paid, you wouldn't sign one. If you have been paid, then there is no reason not to sign one.

The only reason I would consider releasing my right to lien before payment would be to speed up the process of getting paid. I've only been asked for a waiver ahead of payment when a title company was involved and it was very uneventful. I like the idea of the conditional waiver. That would alieviate my concerns (provided it is appropriate here).


Not necesarrialy Bob. You would get used to the idea (although it's not an idea promoted much around here) that not everyone is out to screw you. I think very few do it maliciously. Some find out they can get away with stuff and push a little more and a little more until the next thing you know, your screwed. Others are just igorant and you get screwed because they don't have a clue. But you learn to pick up those types as quickly as you can.

The beauty of working mainly from referrals is that you always a little more leverage by going back to the person that refered, or even mentioning the referer's name to someone who might be acting undesirably can remind them of the fact that a reputaion is something that is of value.

iwire, if you look at my first post I said it would be a huge red flag if someone wanted a waiver before payment.

Typically this is a trade across the counter of the title company. I sign the waiver, then they print my check. If a GC asked for a waiver I'd say, "Of course I'll give you a waiver...where's the check?"

No check, no waiver.

Dave

If a job is starting to look sour can you put a lein on it beofre anything happens just to get a head start? Is anyone putting leins on any job they do as a precaution?

I've heard of contractors leining property as a routine in contracting (and releasing the lien on completion and payment). I personally feel it's a great way to upset a calm client.

Dave

quote"I've heard of contractors leining property as a routine in contracting (and releasing the lien on completion and payment). I personally feel it's a great way to upset a calm client"

I part time contracted from 1980-1084, and full time since. One thing I learned during this time is it is better to upset a calm client and get paid, than to not upset a client and not get paid. If you smell a rat in there somewhere, file a lein. 4 times I have had to do it, and 4 times I got paid for my work, even though it was the bonding company on the project that ended up sending me a check. One other thing I have noticed. General contractors who are close to pulling the plug, start taking longer and longer between your invoices and sending you a check. Also they get real demanding all of a sudden, and like to express how they expect "loyalty" and so forth from the subs. Whenever I hear that it is time to polish the shotgun.

I wouldn't consider placing a lein on property until the account was well over 30 days, and would take a few earlier steps (letters, phone calls).

The downside of leins is that sometimes only the lawyer gets paid. A $1200 bad debt went bankrupt on me after 5 years. If the homeowner stays in the house you may have your lein for 30 years with nothing but the paper to show for it.

I'm just over 20 years in business for myself and have not collected $3,126.52, which averages $156.32 per year. It's such a small fraction of 1% of my business that I don't sweat it.

Dave