Often times contractors and owners request a waiver well before the check gets issued. What are your policies on issuing waivers? Do any of you only trade waiver for check, or do you usually give it up front?
Any horror stories of issuing a waiver early only to regret later?
Payment and a waiver are typically a trade at the same time. The exception woulb be where someone has already made a payment, then asks for a waiver (which you should give without question). It's a HUGE red flag if someone asks for a waiver without payment.
Re: Waiver of Lien#157148 09/01/0505:49 PM09/01/0505:49 PM
I know a Heating contractor that fell for that. They told him "give us the final lien waiver so we can get you check". He never got paid. I didn't didn't get paid on the same job but at leat I have a lean on the home.
If a lein waiver is requested ahead of payment then It's a red flag. Maybe you get paid once then the next and bigger job you get hosed.
By giving out the lien you said your paid and give up some recoarse.
Don't believe it if they try to tell you it's allways done way before payment.
Re: Waiver of Lien#157150 09/03/0502:19 AM09/03/0502:19 AM
Just do it the way I said. People, most especially crooked general contractor people bounce checks. If your lein has my disclaimer, then its invaled if the check bounces. And most important it holds up in a court of law.
Re: Waiver of Lien#157151 09/03/0509:17 AM09/03/0509:17 AM
Lein waivers are a typical part of business. They are required when the project is paid through a title company. These are the best projects because the money is guaranteed. Once you are paid, you give up the right to lein the property. It is the owners way to prove that everyone has been paid when the project is complete.
Re: Waiver of Lien#157153 09/04/0509:34 PM09/04/0509:34 PM
The best way is to use a Conditional Lien Waver worded to say that this lien waver has to have the cancelled check attached to be valid. That way if the check is not recieved or bounces the lien is not taken off. Check with your attourney to make sure the wording on the conditional waver is accepted in your area/state. As this is a legal document you need to make sure it is correct.
Re: Waiver of Lien#157154 09/05/0501:40 PM09/05/0501:40 PM