Lien Waivers

• 1
  Contractors cannot waive their right to file a lien under the Mechanic's Lien Act.Jupiterimages/Photos.com/Getty Images
  
  Require a signed contract with job specifications from the general contractor and a sworn list of all subcontractors, suppliers, and laborers with their addresses and the amount due to them. Each worker and company listed must provide a written, signed and notarized lien waiver after completing work and receiving payment.
  
  
• 2). Ensure that lien waivers are written and signed by the person performing the work and not a foreman or supervisor. The lien waiver must state that payment was made in full and that the worker does not have the right to file a lien against the property. By law, the contractor cannot waive the right to file a lien under the Mechanic's Lien Act.
  
  
• 3). Provide blank lien waiver forms that use the specific language required by Illinois law to ensure the documents are legal. Purchase blank forms at office supply stores or copy shops. Require the general contractor to collect the notarized forms from each laborer and supplier. Do not pay the contractor until you have received a lien waiver from every laborer and supplier on the sworn list, including the final waiver from the general contractor.
  
  
• 4). Ask the contractor to sign a waiver of lien to date when making a partial payment. This waives the right to place a lien as of the date stated in the waiver. The contractor can also provide a waiver of lien to amount paid, which waives the right to file a lien for a specific amount of money that has been paid. The final waiver of lien waives the right to file a mechanic's lien for any further amounts that may be due under the contract.