Michigan Lien Waiver Rules
- Rules At A Glance
- Top Links
Specific Form Required
Michigan requires the use of a specific lien waiver form in order for it to be effective.
Notarization Not Required
Michigan lien waivers do not require notarization, only signature by the claimant.
Cannot Waive Rights in Contract
In Michigan, lien waivers prior to work are strictly prohibited by statute.
Cannot Waive Rights Before Payment
In Michigan, all lien waivers are only effective upon payment of the amount indicated in the waiver.
Michigan lien waivers are regulated in form and in timing and this is great news for contractors, suppliers, lenders, property developers, and anyone else on a Michigan construction project. Michigan is just one of 12 states that provide statutory lien waiver forms and have specific lien waiver laws. While it may seen frustrating to need to comply with specific statutory requirements, the truth is that not having lien waiver rules is the real headache. When lien waivers must comply with the statutory form it makes it much easier to know what you are getting (and giving).
Lien waivers are pretty complex documents. But, given how often they are exchanged, they can be glossed over. A lien waiver works as a receipt that payment has been made, or has been promised, for work or materials furnished on a job. These documents are exchanged at the time of payment, and commonly attached to subcontractor pay applications or vendor invoices.
There are different types of lien releases for different types of situations, depending on whether payment has been made or was promised, and whether the project has ended or is ongoing. Also, one pesky aspect of lien waivers is that the process of sending, requesting, tracking, and collecting lien waivers is an administrative pain that slows down the payment process.
As mentioned above, Michigan provides a Lien Waiver Form Template in its statutes, and that particular template should be used by everyone in Michigan in order to ensure their lien waivers are compliant and enforceable.