Financial Lease Agreement Template
A detailed financial lease agreement template that sets out loan terms, repayment schedules, security interests, and obligations of both lender and client.
Lien waiver
A lien waiver is a legal document that, once signed, relinquishes a party's right to file a lien against a property for unpaid work or materials. It serves to protect property owners from potential claims and disputes related to construction or renovation projects.
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4 Lien waiver examples
- Description
The Vendor’s Lien Waiver dated as of October 1, 2014, by and among Bryan Die Cast Products, Inc., an Indiana corporation, the Borrower and Branch, Banking and Trust Company.
- Description
Lien Waivers. Upon Buyer’s request, Crown shall provide to Buyer (i) an executed conditional waiver of liens in the form attached as Appendix F-1 to this Purchase Order, which will waive any liens with respect to the invoiced amount for the Units after such invoice (including any late fees and Transaction Taxes) has been paid in full by Buyer and (ii) an executed unconditional waiver of liens in the form attached as Appendix F-2 to this Purchase Order, which shall waive all liens with respect to the Units once all invoices for such Units have been paid in full and payment has been received by Crown.
- Description
Provided, however, Landlord may withhold the final draw until such time as Landlord has received final, unconditional lien waiver(s) from all such contractor(s) (each, an “Unconditional Lien Waiver”).
- Description
WHEREAS, the Borrower has notified the Administrative Agent of Liens on certain Properties of the Loan Parties as of the date hereof, and such Liens would cause an Event of Default arising under Section 10.01(d) of the Credit Agreement as a result of the failure by the Borrower to observe Section 9.03 of the Credit Agreement (the “Lien Covenant”) in connection with such Liens (the “Lien Covenant Event of Default”), and the Borrower has requested that the Lenders (i) waive the Lien Covenant Event of Default and (ii) notwithstanding the Lien Covenant, consent to the existence of certain other Liens imposed by law of the type that would be permitted under clause (c) of the definition of “Excepted Liens” in the Credit Agreement but for certain actions taken, or being taken, by the Loan Parties, in each case until April 14, 2020 (collectively, the “Lien Waiver and Consent Request”).
What is a Lien Waiver?
A Lien Waiver is a legal document used in the construction industry which provides evidence that a contractor, subcontractor, or supplier has received payment and thereby waives any future lien rights to the property in question. It essentially protects the property owner from having a lien placed against the property for unpaid work or materials after the issuing party receives payment.
When should I use a Lien Waiver?
You should use a Lien Waiver whenever progress payments or final payments are made on a construction project. Typically, they are exchanged upon receipt of payment to ensure all parties acknowledge that they have been compensated and relinquish the right to place a lien on the property. Both property owners and contractors benefit from this practice, as it creates clear records and mitigates disputes over payment.
How do I write a Lien Waiver?
When writing a Lien Waiver, it’s crucial to include the following key components:
- Identification of the Parties: Clearly specify the name of the person or company waiving lien rights, as well as the entity making the payment.
- Project Details: Describe the construction project, including the property address or location.
- Payment Information: Include details about the payment amount and what it covers, such as specific services, labor, or materials.
- Waiver Type: Specify whether it is a conditional or unconditional waiver, and whether it pertains to partial or final payment.
- Legal Language: Ensure the waiver contains legal language stating the relinquishment of the right to place a lien once payment is confirmed.
Example:
Upon receipt of $5,000, Company A hereby waives and releases any lien rights on the described property for the labor and materials provided up to October 2023, as part of the renovation project at 123 Main Street, Cityville.
Which contracts typically contain a Lien Waiver?
Lien Waivers are typically found in contracts related to construction and real estate development, including but not limited to:
- Construction Contracts: Between property owners and general contractors.
- Subcontractor Agreements: Between general contractors and subcontractors.
- Supplier Contracts: Between construction companies and material suppliers.
These documents are crucial to establishing a payment trail and ensuring that all entities involved acknowledge their compensation and forfeit future lien rights.
Templates refrencing "Lien waiver"
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Limited lifetime warranty
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Limited warranty
A limited warranty is a contractual clause that provides a guarantee for a product or service but restricts the conditions and scope of coverage. It typically specifies what is covered, the duration of the warranty, and any actions or circumstances that may void it.
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