Tennessee Lien Waivers Guide and FAQs

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Tennessee Lien Waiver FAQs

Tennessee Lien Waiver Overview

Tennessee Lien Waiver Rules


  • Rules At A Glance
lien waivers not regulated
No Specific Form

Tennessee does not require that lien waivers be in any specific form in order to be effective.


lien waivers do not need to be notarized
Notarization Not Required

Tennessee does not require that a lien waiver be notarized, but it must be expressly agreed to in writing.


icon-can't waive lien rights
Cannot Waive Rights in Contract

Tennessee specifically does not allow mechanics lien rights to be waived in a contract. Further, if a party attempts to violate this provision, they can be subject to penalties and lose their license.


icon-can
Can Waive Rights Before Payment

As long as the wavier is not in the contract, Tennessee does not prohibit waiving lien rights prior to payment.

Tennessee lien waivers are exchanged all the time on construction projects in that state, just like they are everywhere else. But, unlike many other states, where a failure to follow lien waiver rules can just result in an invalid or ineffective lien waiver, the law regarding lien waivers in Tennessee provides for more strict consequences.

In Tennessee, “no-lien” clauses or other provisions in a contract that attempt to waive lien rights prior to labor or materials being furnished are prohibited. And Tennessee lien waiver law provides strict consequences for any contractor who attempts to violate that restriction.

In fact,  TCA § 66-11-124(b) makes it possible for a contractor to lose their license if they make an attempt to violate the restriction. Wow.

That statutory provisions states that;

“(1) Any contract provision that purports to waive any right of lien under this chapter is void and unenforceable as against the public policy of this state.

(2)(A) If a contractor solicits any person to sign a contract requiring the person to waive a right of lien in violation of this section, the person shall notify the state board for licensing contractors of that fact…(B) If the contractor does not delete the waiver of lien provision, then the executive director shall schedule a hearing for appropriate action by the board. If the board finds after a hearing that the contracts of the contractor are in violation of this section, the contractor’s license shall be immediately revoked.”

Just as it is crucial for construction participants in Tennessee to make sure that their contracts don’t attempt to waive lien rights in advance, it is also important to make sure any lien waiver signed and exchanged is read carefully. Tennessee doesn’t require lien waivers to follow any particular form, or otherwise regulate the content of lien waivers. This means that, provided the waiver is requested after work has been provided, it can say basically anything. This means that it is possible to waive more than just lien rights, or waive more lien rights than desired, if the waiver isn’t looked over carefully.

Tennessee Lien Waivers FAQs

Tennessee lien waiver rules and requirements can be complex. And, since there can be significant consequences if certain rules are not followed, construction participants in Tennessee should pay careful attention when dealing with lien waivers. Since there are no required forms, lien waivers in Tennessee can say pretty much anything. We have some of the most common questions about Tennessee's lien waiver rules below.

Tennessee Lien Waiver FAQs

Does Tennessee require a specific statutory lien waiver form?

No, Tennessee does not provide or require statutory forms for lien waivers.

Are Unconditional Lien Waivers Prohibited in Tennessee?

No. Tennessee allows for unconditional lien waivers as long as the waiver:

  1. shows that the party has a clear intention to unconditionally waive lien rights, and
  2. the labor or materials subject to the waiver have already been provided to the project.
Is there a specific statutory prohibition on lien waivers in advance of payments, furnishing of work, or furnishing of materials in Tennessee?

Yes, Tennessee statutory law, TCA § 66-11-124(b), even goes so far as to provide substantial penalties for parties that attempt to violate the provision. Not only is “any contract provision [purporting] to waive any right of lien under this chapter void and unenforceable as against public policy”

But, a contractor that solicits another party to waive a lien right in violation of Tennessee law can lose their license. 

This is set forth clearly in TCA § 66-11-124(b)(2)(A), which states that:

“If a contractor solicits any person to sign a contract requiring the person to waive a right of lien in violation of this section, the person shall notify the state board for licensing contractors of that fact…(B) If the contractor does not delete the waiver of lien provision, then the executive director shall schedule a hearing for appropriate action by the board. If the board finds after a hearing that the contracts of the contractor are in violation of this section, the contractor’s license shall be immediately revoked.”

Must a Tennessee lien waiver be notarized?

No. Tennessee statute requires that a lien waiver must be expressly agreed to in writing, but the waiver does not need to be notarized.

Need More Help With Tennessee Lien Waivers? We're Here.

Free Tennessee Lien Waivers Forms & Templates

Tennessee doesn’t regulate the wording or form of lien waivers, provided that they are not provided by contracting advance. This means that a Tennessee lien waiver can say almost anything, and waive rights in addition to those a party has agreed to waive. Using these forms provided by Levelset is safe, easy, stress-free, and fair for everyone involved. When used correctly, these forms don’t waive more than intended, and are fair for all parties.

The forms provided here for free by Levelset are compliant with the Tennessee rules. You can download them free, or use our free system to send or request your compliant Tennessee lien waiver form.

 

Free Tennessee Lien Waiver Forms

These Tennessee lien waiver forms are compliant with the state's requirements, fair for everyone, and don't have surprises. Make it easy, and use forms from the source you can trust.

Tennessee Final Conditional Lien Waiver Form - free from

Tennessee Final Conditional Lien Waiver Form

This tn final conditional waiver (also called a final conditional lien release) should be used when the final payment for a project is expected but...

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Tennessee Partial Unconditional Lien Waiver Form - free from

Tennessee Partial Unconditional Lien Waiver Form

This tn partial unconditional waiver (also called a partial unconditional lien release) should be used when a progress payment on the project has been received....

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Tennessee Partial Conditional Lien Waiver Form - free from

Tennessee Partial Conditional Lien Waiver Form

This tn partial conditional waiver (also called a partial conditional lien release) should be used when a progress payment on the project is expected. There...

Get Form Now

Tennessee Final Unconditional Lien Waiver Form - free from

Tennessee Final Unconditional Lien Waiver Form

This tn final unconditional waiver (also called a final unconditional lien release) should be used when the final payment for a project has been made...

Get Form Now

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