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Can I ignore a request for a lien waiver and cash a check that partially satisfies the debt?

ColoradoLien Waivers
Anonymous Contractor

I have a lien order with Zlien and the contractor has sent a check for 2/3 of the amount owed, however they stamped the endorsement area with a “lien waiver” worded paragraph. Can I cross that out and write “do not agree to terms” and still cash the check & pursue the remaining amount owed?

1 reply

Matt Viator
Construction Lawyer
Levelset Admin at Levelset
| 1,003 reviews
Apr 27, 2018
That's a good question - and it's good to be skeptical of such language on a check. First, it's worth taking a deeper look at any lien waiver language added to a check. If the language purports only to waive lien rights for the amount of that check, it might not be a huge issue. After all, lien waivers are intended to act like receipts - if $1,000 is paid and a lien waiver for $1,000 is submitted in exchange, all would seem to be fair. Granted, if there is an issue with waiver language - such as language that purports to waive an amount greater than the amount on a check or if the waiver language contains terms that would forfeit other rights, signing could be a bad idea. Ultimately, if the terms contained on a check are not agreeable, it might not be a wise move to sign that check - even if the language is scratched out or explicitly not agreed to. It's entirely possible that scratching out language or otherwise marking a check would not work to make the waiver language ineffective. A better option might be to contact the party issuing the check and discuss the waiver language. Potentially, the party providing the check might be amicable to using a more standardized lien waiver in exchange for payment. Note, though, that the language appearing on the check might ultimately be the only thing that matters - so verbal agreements or understandings contrary to that language should not be taken as gospel.
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