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$0 amount on lien waivers

CaliforniaLien Waivers

I read in the lien waiver fundamental class about not signing lien waivers with $0 amounts on them. But what I don't understand is when I can sign a conditional final, as I have only ever seen $0 CFs. I am from CA, and we also have customers from NV.

3 replies

May 23, 2023

Hi there! $0 CFs do not really make sense; the amount should be changed to whatever final balance is due and owing. If there is none, there should be no CF to give. If anything, and assuming you are paid in full for the project, you may consider giving a unconditional waiver and release upon final payment.

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May 23, 2023

Thank you! I am also getting a customer right now who is requesting a $0 waiver for a UF for which they have not paid anything yet. We returned the waiver with the payment amount $5,000.00 (example).
They returned it to us and said the payment amount needed to be $0 in order for the bank to approve it, and that puting $5K in the payment amount made the waiver "upside-down". Is it still adviseable to not grant a $0 lien waiver in this case?

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May 23, 2023

There is no reason to ever give an UF until your final payment clears the bank. You would give a CF for the balance due for your final payment. If you are owed money, you cannot give a $0 CF or UF.

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