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Can a conditional lien waiver be signed prior to payment in Tennessee?

2 years ago

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.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
Senior Legal Associate Levelset
399 reviews

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.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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