Lien Waivers: Why They Protect You

When your builder pays a subcontractor, that subcontractor signs a lien waiver confirming they've been paid for the work to date. Without it, a subcontractor who feels unpaid can file a mechanic's lien against your home — even though you paid the builder. There are four common types: - Conditional partial: waiver applies only after the payment clears. - Unconditional partial: waiver is effective immediately. - Conditional final: same as conditional partial, but for the final payment. - Unconditional final: same as unconditional partial, but for the final payment. Most lenders require waivers before releasing each draw. Keep every signed waiver in your Document Vault.