Arizona Lien Waiver Rules
- Rules At A Glance
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Specific Form Required
Arizona sets out a required lien waiver template by statute. In order to be valid, an Arizona lien waiver must follow that template.
Notarization Not Required
Arizona lien waivers are not required to be notarized, and should not be notarized.
Cannot Waive Rights in Contract
No, Arizona statute specifically prohibits this practice. Any contract term to that effect shall be void.
Can Waive Rights Before Payment
There is no specific prohibition on waiving lien rights prior to payment, provided that the statutory lien waiver form is used.
Arizona lien waivers are regulated. The rules, forms, and procedures are specific. If you’re involved in an Arizona construction job, it’s important to understand the lien waiver requirements, and to adhere to them during the payment and lien waiver exchange process.
Arizona lien waivers — also called lien releases — are simply documents exchanged at the time of payment on a construction job. Frequently, subcontractors provide lien waivers along with their payment applications or invoices. It’s common for a signed lien waiver to be a prerequisite to having a contractor’s pay application approved, and payment issued. The process of requesting, sending, collecting, and tracking lien waivers can be complicated since the documents have required legal elements (especially in Arizona), and because lien waivers must be collected across so many parties (i.e. subcontractors, general contractors, suppliers, etc.).
Lien waivers act as a “receipt” of funds. Construction lenders, property developers, and general contractors rely on signed lien waivers to verify that a subcontractor has paid its suppliers and vendors. Primarily, having this verification is why lien waivers are requested in Arizona. Subcontractors and suppliers, however, sign lien waivers and adhere to waiver requests to clear the path for payment. There is some friction between Arizona job participants about when and how the lien waiver & payment is exactly exchanged.
The lien waiver laws in Arizona make this a bit easier to handle than in other states that do not have clear waiver regulations. As such, while it’s a bummer to have additional compliance matters on an Arizona project, there are big pay-offs, since an unregulated lien waiver environment can be really murky, messy, and problematic.
Arizona lien waiver statutes are relatively straightforward.
Arizona is one of the 12 states that provide statutory lien waiver forms. Failure to use these forms, using the wrong form, or attempts to modify the waiver language will result in the lien waiver being invalid and unenforceable. It’s really that simple.
This is an attempt to level the playing field and simplify the waiver exchange process. In states that do not provide statutory forms, there is an inherent risk of abuse. Many higher tier parties will include additional language that waives more contract and mechanics lien rights than originally anticipated.
While the Arizona lien waiver form templates are laid out and seem straightforward, mistakes can still be made. It’s important to understand Arizona’s lien waiver requirements to avoid these errors.
The information on this page provides frequently asked questions, forms, guides, and other helpful information on Arizona Lien Waivers. If you want to dig in more specifically, here are specific guides on the 4 different types of Arizona lien waivers, including a step-by-step walkthrough on how to fill out those forms: