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Unconditional Lien Waiver

3 months ago

We are working with a GC that will only release payment with an Unconditional Lien Waiver in exchange they will not send a Conditional Lien Waiver. Is it safe to sign this before we have the money cleared in our account and can they refuse to give it to us without a Unconditional Lien Waiver signed first?

Additional info about this contractor
Project Role: Other
Project Type: Commercial
Senior Legal Associate Levelset
355 reviews

Submitting an unconditional lien waiver before payment has actually been received is a dangerous proposition. Unconditional lien waivers should only be submitted when payment has been made, and conditional lien waivers are more appropriate when payment is being withheld until after the waiver is submitted.

What’s more, it’s illegal to request an unconditional waiver before payment has been received. Texas Property Code § 53.283 states that “A person may not require a claimant or potential claimant to execute an unconditional waiver and release for a progress payment or final payment amount unless the claimant or potential claimant received payment in that amount in good and sufficient funds.

As laid out by § 53.284(b) and (d), conditional lien waivers are the appropriate and legal option for customers who demand a lien waiver be submitted before payment is actually made.

Additional Texas mechanics lien resources

In addition to the above, the following resources should be valuable.

– Texas Lien Waiver Forms & Guide – All You Need to Know
– Texas Lien Waivers Guide and FAQs
– Unconditional Lien Waivers vs Conditional Lien Waivers

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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