I am on the lending side and would like to pay a vendor. When I asked for a conditional release upon final payment they said that the affidavit should work instead.
Jan 21, 2019
That's a great question. Ultimately, it's up to the lender, property owner, or other top of chain party to decide what's acceptable prior to releasing funds. Each business has its own set of standards as to what's acceptable, and "best practices" may vary quite a bit from company to company. However, it's worth noting that an affidavit and total release of bills paid will not waive the right to lien in Texas, in and of itself. Texas is one of few states that's very strict about their lien waivers. To waive the right to lien, one of the statutory forms found in the Texas Property Code (at § 53.284) must be used. Of course, if all payments have been made (and the affidavit would purport to prove that), no party would have lien rights since lien rights only exist for those who have performed work and gone unpaid. But an affidavit stating that payment has been made will not provide the same peace of mind that a lien waiver does in the Lonestar State. For more on Texas lien waivers, this resource should be helpful: Texas Lien Waiver FAQs.