What to Know About Waiving Your Lien Rights

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A question recently came up regarding a customer asking a flooring contractor to sign a document waiving lien rights before the project began. Should you do this? Is it enforceable? The common sense answer is that you should not sign something waiving lien rights in advance. Unless you are being paid in full up front for all the work, you do not know if there will be payment issues later. Therefore, it is advisable not to sign anything that states you may not file a lien against the customer’s property.

While this is the best practice, note that advance lien waivers are not enforceable under many state laws. The lien laws are different in every state, so it is not possible to describe them all in detail here. However, many state laws provide that a contact clause or other document purporting to waive lien rights in advance is not enforceable. I recommend reviewing the law in your state to confirm how it views advance lien waiver clauses.

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