Michigan lien waiver forms: which one to use and when

Michigan's four forms

“Substantially the following format” means fill in the blanks and keep the wording. The forms are short, so there's little reason to deviate. Every one of them ends with the lien claimant's signature, the date signed, an address and a telephone number, and this line in capitals: “DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.”

When you owe a waiver

• Paid in full: a lien claimant who receives full payment for the contract “shall provide” a full unconditional waiver to the owner, lessee or their designee (subsection 2).
• Paid in part: a partial unconditional waiver for the amount received is owed if the owner, lessee or designee asks for one (subsection 3).
• Before payment: the conditional forms are effective “upon payment of the amount indicated in the waiver” (subsection 4).
• Never in advance: no one can require, as part of a contract, that lien rights be waived before the work is done. A waiver in a contract is invalid except to the extent payment was actually made (subsection 1).

The partial forms' “does / does not” line

Both partial forms waive your lien “to the amount of” a figure, for labor or materials “provided through” a date. Then comes a line you have to complete by circling one word:

Circle “does not” if anything is still owed through that date, such as an unpaid change order or extra. Retainage is treated separately: under subsection 5, retainage that isn't payable until some event besides finishing the work isn't due as of the date you provide the improvement.

When a waiver binds you even if payment fails

Subsection 6 is the rule Michigan claimants most often miss. A waiver “shall be effective when a person makes payment relying on the waiver unless at the time payment was made the person making the payment has written notice that the consideration for the waiver has failed.” If the check behind your conditional waiver bounces, put that in writing to the owner, lender or designee right away, before they pay someone else in reliance on your waiver.

Residential jobs get one more protection. If you've given a notice of furnishing, or are excused from giving one, an owner or lessee can't rely on a waiver for you that came from someone else until they've checked it with you “either in writing, by telephone, or personally” (subsection 7). The forms print the same warning.

Signing: waivers no, sworn statements yes

The waiver forms need only the lien claimant's signature. There's no notary block or witness. Michigan's Uniform Electronic Transactions Act says “If a law requires a signature, an electronic signature satisfies the law” (MCL 450.837(4)), so the claimant can sign on a phone or computer. More in Michigan's e-signature law.

The sworn statement under MCL 570.1110 is a different document. A contractor gives one to the owner when payment is due or requested, or on demand, and a subcontractor gives one to the contractor when it's due payment. It lists every subcontractor, supplier and unpaid laborer with amounts, and ends “Subscribed and sworn to before me” with a notary public. A false sworn statement given with intent to defraud carries criminal penalties. Michigan allows remote electronic notarization on platforms approved under MCL 55.286b, so a notary can complete it online.

Common Michigan mistakes

• Signing a blank form. The statute prints the warning on every form for a reason; fill in the amount and date first.
• Circling “does” by habit. It tells the owner nothing more is owed through that date.
• Giving a full unconditional waiver for final payment by check. Use the full conditional waiver until it clears.
• Staying quiet when a check bounces. Under subsection 6, written notice is what stops others relying on your waiver.
• Mixing up the sworn statement and the waiver. One lists who's owed money and needs a notary; the other gives up lien rights.

Sending Michigan waivers with SignMaster

1. 1

   Set up all four forms

   Type each form from MCL 570.1115(9) and upload it with New template, with one signing role for the lien claimant.

2. 2

   Make the choices explicit

   Use a radio field for “does / does not,” plus currency and date fields for the amount and through date. Add Signature, Date signed, Phone and the address as fields so no form goes out incomplete.

3. 3

   Send conditional, then unconditional

   Send the partial conditional waiver with your request for payment, and the partial unconditional waiver once the money clears. Required fields stop the claimant signing with blanks left.

4. 4

   Keep the sworn statement separate

   Send it as its own envelope. The deponent can choose Print and sign instead, sign before a notary and upload the notarized pages, which are added to the signed PDF.