Construction glossary term

Lien Waiver

A lien waiver is a legally-binding document utilized in the construction and real estate industries which relinquishes an individual's or entity's right to make any future claim or enforce a lien against the property or payment for services rendered or goods provided.

This waiver ensures that property owners, contractors, and subcontractors minimize the risk of financial disputes and maintain a clear title to the property. Typically exchanged during the payment process, it safeguards the parties involved from potential legal conflicts and strengthens trust and transparency throughout the business transaction.

Lien waivers can vary in terms of their conditional or unconditional protections and are often drafted and reviewed by legal representation.

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