Can a conditional lien waiver be signed prior to payment in Tennessee?
I noticed this sentence on your web site: “A contractor that solicits another party to waive a lien right in violation of the Tennessee law can lose their license.” Does this mean I cannot ask a Tennessee sub to sign a Georgia lien waiver form, with its conditional then unconditional language, prior to payment? Thank you.
Answered 10 months ago
That's a great question. The article this comes from is titled "Can You Waive Lien Rights Before Work?
" This article specifically identifies potential outcomes when a contractor or subcontractor includes language in their contract
that attempts to waiver lien rights before the work is performed
. Further, a Tennessee contractor will not lose their license based on waiver language in a contract unless that contractor has first been warned by the state board for licensing contractors. After being warned, the contractor will then be given a chance to remove the language from the contract. If the contractor refuses, the issue will go to a hearing before the licensing board before any revocation could occur. Finally, as Tennessee is not one of the 12 states with statutory lien waiver forms
, Tennessee contractors may whatever lien waiver forms they see fit. But those lien rights may not be waived before work is performed.