What is a lien waiver?
A lien waiver is a document a contractor, subcontractor or supplier signs to give up the right to put a lien on a property, usually in exchange for a payment. Think of it as a receipt with legal teeth: the owner gets proof that the people who did the work were paid, and the person signing gives up the right to claim that money again.
Updated October 13, 2026 · 5 min read
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Why lien waivers exist
Every state gives people who improve a property a way to get paid if the bill goes unpaid: a mechanics lien. The lien attaches to the property itself, so a homeowner who paid the general contractor in full can still face a lien from a subcontractor or supplier the contractor never paid.
Lien waivers close that gap. Each time money moves down the chain, from owner to contractor to sub to supplier, the person paid signs a waiver for that amount. Owners, lenders and title companies collect them so they can show that every dollar paid out actually reached the people who earned it.
The four types of lien waiver
Waivers vary along two lines: whether they take effect only once payment arrives (conditional or unconditional), and whether they cover one payment or the whole job (progress or final). Put together, that makes four types.
| Type | What it gives up | When to sign it |
|---|---|---|
| Conditional, progress | Lien rights for one payment, once that payment clears | With your invoice or pay application, before you're paid |
| Unconditional, progress | Lien rights for one payment, immediately | After the money is in your account |
| Conditional, final | All remaining lien rights, once final payment clears | With your final invoice |
| Unconditional, final | All remaining lien rights, immediately | Only after final payment, retainage included, has cleared |
The one rule that matters most
An unconditional waiver works the moment you sign it, paid or not. Never sign one against a check that hasn't cleared or a payment that's only promised. Use the conditional version until the money is yours.
Conditional vs unconditional
A conditional lien waiver says, in effect, "once I'm paid this amount, I release my lien rights for it." If the check bounces or never comes, the waiver doesn't take effect. California's statute, for example, says a conditional release only works when there's evidence of payment, like the claimant's endorsement on a check the bank has paid.
An unconditional lien waiver says "I have been paid, and I release my rights." It's the safer document for the owner and the riskier one for you. The usual sequence is a conditional waiver with the invoice, then an unconditional one once the payment clears.
Progress vs final
A progress (or partial) waiver covers work through a specific date or for a specific amount. Anything after that date, and anything you list as an exception, stays protected. A final waiver covers the whole job, so once it takes effect you have no lien rights left on that project.
That's why the final waiver is where people get burned. If your contract holds back retainage, or a change order is still in dispute, a final waiver can sign away your leverage on money you haven't received. List open amounts as exceptions, or hold the final waiver until they're settled.
States that set the form by law
In most states the parties choose the wording. Some states write the waiver form into statute, and a waiver that strays from it may not be enforceable. These are the ones we checked against the statute text. The list isn't exhaustive, and statutes change, so confirm your state's current rules before you rely on a form.
| State | Statute | What it sets |
|---|---|---|
| Arizona | A.R.S. § 33-1008 | Four forms (conditional and unconditional, progress and final). A waiver is unenforceable unless it follows them substantially. |
| California | Civ. Code §§ 8124, 8132–8138 | Four forms. A waiver only releases rights if it's substantially in the statutory form and signed by the claimant. |
| Florida | Fla. Stat. § 713.20 | Progress and final forms. Using them is optional, but no one can require a lienor to sign a different form, and advance waivers are unenforceable. |
| Georgia | O.C.G.A. § 44-14-366 | Interim and final forms, each with a witness line. A waiver takes effect when the payment arrives or the signer separately acknowledges full payment, or 90 days after signing unless the signer files an affidavit of nonpayment in the county before then. |
| Massachusetts | M.G.L. c. 254, § 32 | A partial waiver and subordination form for people who have recorded a notice of contract. |
| Michigan | MCL § 570.1115 | Four forms (full and partial, conditional and unconditional). Conditional waivers take effect on payment. |
| Missouri | RSMo § 429.016 | For certain residential projects, an unconditional final waiver is valid only on the statutory form. |
| Nevada | NRS 108.2457 | Four forms. A waiver is unenforceable unless it's in the statutory form for the situation. |
| Texas | Prop. Code §§ 53.281, 53.284 | Four forms. A waiver must substantially comply with one of them and be signed by the claimant or an authorized agent. |
| Utah | Utah Code § 38-1a-802 | Forms for progress and final payments. |
If you work in one of these states, use the statutory form word for word and fill in the blanks. Don't paste the language into your own template with edits. For anything state-specific, a construction attorney in that state is the right call.
What to check before you sign one
- The parties and the property. Your company name, the customer or contractor you're releasing, and the job address, exactly as on the contract.
- The amount. It should match the payment you're receiving, not the contract total.
- The through date. A progress waiver should cover work only through a date you've actually been paid for.
- Exceptions. Write in unpaid extras, disputed change orders and retainage still held.
- Conditional or unconditional. Match the type to whether the money has cleared.
- The right form. If your state sets one, use it, not a lookalike.
Can you sign a lien waiver electronically?
Generally, yes. The federal ESIGN Act and each state's version of UETA say a signature can't be denied legal effect just because it's electronic. The lien statutes we checked ask for the claimant's signature, not ink or a notary. Georgia's statutory forms also have a witness line, so add the witness as a second signer. Texas, for example, requires that the waiver be signed by the claimant or an authorized agent. If a contract, lender or title company asks for a notarized waiver, an e-signature alone won't cover that. See e-signature laws by state for your state's act.
Sending lien waivers with SignMaster
SignMaster doesn't write waivers for you, and it doesn't pick your state's form. It makes collecting and signing them fast. Upload your form once and save it as a template with fields for the amount, the through date and the signature. Each time a payment goes out, send it from the template. Each send is an envelope: SignMaster's word for one or more documents going to one or more signers.
- The sub or supplier signs from a link on any phone or computer, with no account.
- Each signer agrees to sign electronically before they sign, and can decline instead.
- The finished PDF comes with a certificate of completion: who signed, their email, IP address, device and the time of each step.
- Every signer gets the signed copy by email the moment the last person signs.
- On paid plans, bulk send puts one template in front of a whole list of subs from a spreadsheet.
Questions? Answers.
Who signs a lien waiver?
The person giving up lien rights: the contractor, subcontractor or supplier being paid. Texas and California both say the waiver must be signed by the claimant (Texas also allows an authorized agent). The owner or payer collects it.
Does a lien waiver need to be notarized?
Not under the Texas or California statutes, which ask for the claimant's signature. A contract, lender or title company can still require notarization, so check what the person asking for the waiver needs.
What happens if I sign an unconditional waiver and never get paid?
You may have given up your lien rights for that amount, even though the money never came. Some states add their own twists (in Georgia, a waiver becomes binding after 90 days unless the signer files an affidavit of nonpayment in time). If it's happened to you, talk to a construction attorney quickly, because lien deadlines are short.
Is a lien waiver the same as a lien release?
People use the terms loosely, and many statutes say "waiver and release" together. A waiver usually gives up the right to file a lien for money paid. Removing a lien that's already been recorded with the county is usually a separate document.
Can I use a free lien waiver template?
In a state with a statutory form, use that form. Elsewhere a template can work, but read it against the checklist above, especially the through date, the exceptions and whether it's conditional.
Sources
- Arizona Revised Statutes § 33-1008, lien waiver forms · azleg.gov
- California Civil Code § 8124, when a waiver and release is effective (§§ 8132–8138 hold the forms) · leginfo.legislature.ca.gov
- Florida Statutes § 713.20, waiver or release of liens · leg.state.fl.us
- Georgia SB 315 (2020), amending O.C.G.A. § 44-14-366 (statutory waiver forms) · gov.georgia.gov
- Georgia SB 143 (2021), amending O.C.G.A. § 44-14-366(g)(2) (affidavit of nonpayment) · gov.georgia.gov
- Massachusetts General Laws c. 254, § 32 · malegislature.gov
- Michigan Compiled Laws § 570.1115 · legislature.mi.gov
- Missouri Revised Statutes § 429.016 · revisor.mo.gov
- Nevada Revised Statutes 108.2457 · leg.state.nv.us
- Texas Property Code §§ 53.281–53.284, waiver and release forms · statutes.capitol.texas.gov
- Utah Code § 38-1a-802 · le.utah.gov
- 15 U.S.C. § 7001, ESIGN Act general rule and consumer consent (govinfo) · govinfo.gov
- Uniform Electronic Transactions Act (1999), final text (Uniform Law Commission) · uniformlaws.org
General information, not legal advice. Laws change, and how they apply depends on your situation. For advice about a specific document, talk to a lawyer licensed in your state.