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When you have a subcontractor lien hanging on your property and you are desperately looking for a waiver, you should remember that the lien will not be discharged if the applicant does not sign and issues a waiver and discharge. When the claimant has signed the form in person or via his empowered representative, the following are discharged:

  • The construction loan provider
  • The possessor/holder of the property
  • Guarantee (if there is a payment bond)

There are certain waiver and release forms that need to be used to avail subcontractor lien waiver. For a smooth and hassle-free execution of the process, the forms have to comply with the following sections in the Civil Code:

  • 8132
  • 8134
  • 8136
  • 8138

Forms for subcontractor lien waiver

Given below are the forms that you can use for waiving a subcontractor lien on your property:

1) Unconditional waiver and release upon progress payment

This form is used while the applicant has to sign a waiver and discharge in lieu of or so that the last payment is sped up. In addition, the applicant declares in the discharge that he has acknowledged the progress payment. However, all the articles are not encompassed by the discharge.

2) Conditional waiver and release upon progress payment

This form is specifically used when the applicant has to sign a waiver and discharge in lieu of or with the intention of speeding up the progress payment and the applicant hitherto has not received the payment. The format helps when the claimant/applicant is yet to receive the payment, however will be compensated via a progress payment which is not the last payment. When the applicant has been paid in reality, then the conditional waiver and discharge will only work. Last but not least, the discharge does not incorporate all the articles.

3) Conditional waiver and release upon final payment

This form is used when the applicant has to sign a waiver and discharge in lieu of or with the purpose of hastening the last payment and where the applicant is yet to receive the payment. The discharge exclusively stands obligatory when there is satisfactory proof that the applicant has been paid. The proof of disbursement can be shown by the following:

  • The approval of the applicant/claimant on a joint or single check which was disbursed by the bank on which the instrument was drawn; or
  • Receipt of disbursal offered by the applicant/claimant

4) Unconditional waiver and release upon final payment

This form is used while the applicant has to sign a waiver and discharge in lieu of or with the objective of speeding up the final payment and the applicant or claimant declares in the discharge that he has got the last payment.

In this way, you can successfully waive a subcontractor lien on your property. This lien is quite bothersome, especially when you have sincerely made payments to the contractor but the contractor has not done it to the subcontractors, suppliers and other vendors.

 

Author Bio: Jane Fonda is a popular blogger and writes informative blogs and articles for different famous sites. She covers real estate and construction as her specialized area and has a fair understanding of subcontractor lien. 

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