Vermont Lien Waiver Rules
- Rules At A Glance
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No Specific Form
Vermont does not require lien waivers to be in any specific form.
Notarization Not Required
Vermont lien waivers do not need to be notarized.
Cannot Waive Rights in Contract
Vermont does not allow lien rights to be waived prior to furnishing of labor or materials.
Can Waive Rights Before Payment
Vermont allows lien rights to be waived prior to payment if the labor or materials subject to the lien waiver have already been furnished.
Vermont lien waivers are exchanged all the time on construction projects. Whenever payment exchanges hands in the construction industry, a lien waiver is usually requested to go along with it. This makes lien waivers one of the most exchanged documents related two construction payment.
Lien waivers can be regulated heavily, or not regulated at all. Vermont has little regulation surrounding lien waivers, but there are certain rules and requirements that must be followed. While Vermont doesn’t use specific forms, or even require that payment be made prior to a lien waiver being effective, Vermont does prohibit lien waivers in the contract or otherwise in advance of performing work or furnishing materials.
Vermont law specifically states that the right to a mechanics lien “may not be waived in advance of the time such labor is performed or materials are furnished, and any provision calling for such advance waiver shall not be enforceable.”
Even still, construction participants in Vermont should pay careful attention to lien waivers, since there is no required form to use in Vermont, it can be easy to end up waiving more than anticipated, or waiving rights in addition to solely the right to file a lien. Since lien waivers are generally tied directly to receiving payment for the labor or material furnished, and are the only thing standing between a company and it’s cash, there is a big incentive to sign and deliver whatever waiver is presented. It’s worth it, however, to take some time and review the document to make sure there are no surprises.
