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Commercial Office Building – Landlord Protected Lien Waiver

1 week ago

Hello, is it required in the State of Virginia for the lien waiver to be between the contractor and the owner of a property for a commercial office building? For example, if one of our tenants gets a lien waiver from one of their contractors based on their independent third party contract for work within their leased premises, should the Landlord prepare an additional lien waiver between the property owner (Landlord) and the Contractor?

Senior Legal Associate Levelset

The right to file a mechanics lien lies in the property where work is performed – not against individuals or even businesses. So, generally, if all lien rights have been waived in the project property, it shouldn’t really matter whether the waiver is executed between a tenant and the contractor or whether it’s executed between the owner and the contractor.

Now, if a contractor merely waived the right to lien the tenant’s interest in the property and not all of their potential lien rights to the entire property (including the owner’s interest), it might be worthwhile to request an additional mechanics lien waiver.

But, generally, a contractor won’t need to execute lien waivers with both the tenant and the owner of the property. If that owner requests an additional waiver, though, it might make sense for a contractor to submit a waiver to the owner as well in order to facilitate payment and to keep everyone moving in the same direction.

For more information about Virginia mechanics liens, here’s a great resource: Virginia Lien Waivers FAQs

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