TL;DR
A document stating that a contractor, subcontractor, or supplier gives up lien rights for the amount paid.
What it means
A document stating that a contractor, subcontractor, or supplier gives up lien rights for the amount paid.
Where it sits in the glossary
Lien waiver is part of the Legal group inside the ProFix Directory glossary. Browse every term in this category from the glossary index.
Why Ohio homeowners should know it
A lien waiver is the document that says a contractor, subcontractor, or supplier has been paid for a specific amount and gives up the right to file a lien for that amount. On larger Ohio remodels it is normal — and smart — to collect a waiver every time a payment goes out.
Waivers come in conditional and unconditional flavors. Conditional waivers take effect only when the check clears. Unconditional waivers take effect immediately. Homeowners should generally hand out conditional waivers and ask the contractor to return unconditional waivers after each payment clears.
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Where this term gets mixed up
Conditional vs. unconditional
Conditional waivers protect homeowners on bounced checks. Unconditional waivers do not.
Waiver vs. release
Different states use different terms. In Ohio, lien waiver is the common label for both interim and final releases.
Where this term comes from
Ohio Revised Code Chapter 1311.
See also
License: CC-BY-4.0 — quote freely with attribution to ProFix Editorial Team / ProFix Directory.