Lien Waiver
A lien waiver is a legal document in which a contractor, subcontractor, or material supplier acknowledges receipt of payment and waives their right to place a mechanic's lien on the property for that amount of work. In commercial buildouts, lien waivers are the primary mechanism for verifying that the parties who built the space have been paid — and that the property owner or landlord has no outstanding lien exposure. Most TIA reimbursement processes require lien waivers before any funds are disbursed.
Updated July 18, 2026
Key Facts
- 1Most landlords require full conditional or unconditional lien waivers from the general contractor and all major subcontractors before releasing TIA reimbursement funds
- 2A mechanic's lien can be placed on a property by any unpaid contractor or supplier — even if the property owner paid the general contractor in full and the GC failed to pay the subcontractor
- 3There are four types of lien waivers: conditional/unconditional × partial/final — each with different legal weight and timing in the payment process
The Four Types of Lien Waivers
| Type | When Used | What It Means |
|---|---|---|
| Conditional Partial | Progress payment releases | Waives lien rights for the progress payment amount, conditional on funds clearing |
| Unconditional Partial | After payment clears | Permanently waives lien rights for work completed to date — no conditions |
| Conditional Final | Final payment request | Waives all lien rights upon receipt of final payment — used at project close-out |
| Unconditional Final | After final payment clears | Permanent, unconditional release of all lien rights — the cleanest form |
Lien Waivers and TIA Disbursement
Most landlords require a specific lien waiver package before releasing TIA funds. Typically this includes a conditional lien waiver from the general contractor for the payment amount, lien waivers from all subcontractors who have completed work, and a copy of paid invoices. Some landlords also require a title company review to confirm no liens have been recorded.
Understanding this process before construction begins prevents cash flow surprises. If you're funding construction out of pocket and waiting for TIA reimbursement, the lien waiver collection process can take 2–4 weeks after construction milestones — factor this into your cash flow planning.
Frequently Asked Questions
What happens if a subcontractor files a lien even after I paid the GC?
This is one of the most common and painful construction disputes. If the GC was paid but failed to pay subcontractors, those subcontractors can still lien your leased property (or the landlord's property). Collecting conditional lien waivers from the GC and all known subcontractors before final payment is your primary protection.
Are lien waivers required by law?
Lien waiver requirements are governed by state law and vary significantly. Some states (California, Texas, Arizona) have statutory lien waiver forms that must be used — non-compliant waivers are unenforceable. Other states have no mandatory forms. Your attorney or title company should review lien waiver language for your specific state.
Can I get lien waivers after construction is complete?
You can request them, but collecting lien waivers after payment has been made is harder — contractors have less incentive to cooperate. The standard practice is to make lien waivers a condition of payment: no waiver, no check. Establish this expectation in the construction contract before work starts.