General Principles: No lien release is binding unless the claimant signs and delivers a waiver and release. If signed by the claimant or his or her authorized agent, the signed form is effective to release the: Show
For more information on mechanics liens, view the Understanding Mechanics Liens section. Be careful: paying your contractor (and/or getting a release from your contractor) does not guarantee that other claimants, like subcontractors and suppliers, are paid. A claimant is a person who, if not paid, can file a lien on your property. To be effective, the waiver and release forms must follow, substantially, one of the forms set forth in Civil Code sections 8132, 8134, 8136, and 8138. The forms are: Conditional Waiver and Release Upon Progress PaymentUse this form when the claimant is required to sign a waiver and release in exchange for, or in order to, induce a progress payment, and the claimant has not yet been paid. This form is useful when the claimant is not yet paid, but will be paid out of a progress payment that is not the final payment. This conditional waiver and release is only effective if the claimant is actually paid. This release does not cover all items. See the Conditional Waiver And Release Upon Progress Payment form. Unconditional Waiver and Release Upon Progress PaymentUse this form when the claimant is required to sign a waiver and release in exchange for, or in order to, induce a progress payment, and the claimant asserts in the waiver that he or she has received the progress payment. This release does not cover all items. See the Unconditional Waiver And Release Upon Progress Payment form. Conditional Waiver and Release Upon Final PaymentUse this form when the claimant is required to sign a waiver and release in exchange for, or in order to, induce a final payment, and the claimant has not yet been paid. This release is only binding if there is evidence of payment to the claimant. Evidence of payment may be demonstrated by:
See the Conditional Waiver and Release Upon Final Payment form. Unconditional Waiver and Release Upon Final PaymentUse this form when the claimant is required to sign a waiver and release in exchange for, or in order to, induce a final payment and the claimant asserts in the waiver that he or she has received the final payment. See the Unconditional Waiver and Release Upon Final Payment form. CAUTIONIn the case of a conditional release, the release is only binding if there is evidence of payment to the claimant. Evidence of payment may be demonstrated by:
LIEN WAIVER FORMSTexas Property Code, Section 53.284, prescribes statutory language for Waiver and Release of Lien or Payment Bond Claims. Waivers for claims under a PRIME CONTRACT signed AFTER January 1, 2021, DO NOT need to be notarized. Sample forms Conditional Waiver on Final Payment Post-2021.pdf Conditional Waiver on Progress Payment Post-2021.pdf Unconditional Waiver on Final Payment Post-2021.pdf Unconditional Waiver on Progress Payment Post-2021.pdf Waivers for claims under a PRIME CONTRACT signed BEFORE January 1, 2021, MUST be notarized. Sample forms: Final Payment - Conditional Waiver & Release Final Payment - Unconditional Waiver & Release Progress Payment - Conditional Waiver & Release Progress Payment - Unconditional Waiver & Release See Chapter 121, Texas Civil Practice & Remedies Code, regarding Acknowledgments & Proofs of Written Instruments, or consult an attorney. Short acknowledgement forms that might be suitable and can be attached to the Waiver form, may be found in Section 121.008. On June 15, 2021, Gov. Greg Abbott signed into law House Bill 2237, introducing major changes to Chapter 53 of the Texas Property Code 1. These changes, which took effect on January 1, 2022, reflect new rules and regulations surrounding the filing of a Texas mechanics lien and all steps that come with it, including notice requirements and deadlines. Texas is a state with very strict, not to mention complicated, mechanics lien rules. The state has complex requirements for filing a Texas mechanics lien, and it regulates even the use of lien waivers. In Texas, a party cannot just use any lien waiver template. A valid Texas lien waiver must be the same as the statutory form described in Texas Property Code Sec. 53-284; otherwise, the lien waiver will not be enforceable. Send a Texas Conditional Waiver and Release on Final Payment in 60 secondsSend Online Today This guide talks about the Texas Conditional Waiver and Release on Final Payment. Note that this specific lien waiver is only one of the four Texas lien waiver types. Quick links
When do you use a Texas Conditional Waiver and Release on Final Payment?Use a Texas Conditional Waiver and Release on Final Payment if the following scenarios apply:
Signing a conditional lien waiver is generally a better idea than signing an unconditional lien waiver. As mentioned, a conditional lien waiver protects you in case payments do not go through. However, signing a final payment waiver when your work on a project is not yet complete is very dangerous. You may end up losing your lien rights for the entire project, even if you are only receiving (or have received) a portion of your full payment. It is very important that you sign this specific Texas lien waiver only when your work on the project is done. How to fill out a Texas Conditional Waiver and Release on Final PaymentThe first step to ensure that your Texas Conditional Waiver and Release on Final Payment is the same as the template provided under Texas Property Code Sec. 53-284: When you have the correct lien waiver form, all you need to do is fill in the blanks with the following information: 1. ProjectWrite the name of your project. 2. Job No.Write your project number. 3. Maker of checkWrite the name of the person who issues the check. 4. $Write the amount found on the check. 5. Payee(s) of checkWrite the name(s) of the party or parties to whom that check is issued. 6. Person with whom signer contractedWrite the name of the person who hired you for the project. 7. OwnerWrite the name(s) of the owner(s) of the property. 8. LocationWrite the project address. Make sure to include the zip code and the county. 9. Job descriptionWrite a description of the services that you provided to the project. 10. DateWrite the date when you sign the lien waiver. 11. Company name, Signature, TitleWrite your name, signature, and job title. Note that this part may be filled by your designated agent. Must the Texas Conditional Waiver and Release on Final Payment be notarized?Yes, Texas is one of the states that require construction participants to have lien waivers notarized before handing them to their clients. Make sure that you sign your lien waiver when you are in the presence of a notary officer. Best practices before signing a Texas Conditional Waiver and Release on Final Payment1. Verify that this is the lien waiver that applies to your situationBefore signing this lien waiver, ask yourself whether you are receiving or have received your final payment for the project. If your answer is yes, then this Texas lien waiver is a safe lien waiver to sign. If you are unsure, or if your work on a project is still in progress and you are therefore expecting to receive regular payments in the future, then consider signing a Texas Conditional Waiver and Release on Progress Payment. 2. Use the statutory template as required by Texas lawsYou cannot make your own lien waiver in Texas, nor can your client require you to sign a lien waiver that is different from the statutory template. Texas recognizes only lien waivers that follow the statutory forms, so signing a customized lien waiver will not work and will not be unenforceable. 3. Texas lien waivers no longer have to be notarizedBeginning 2022, Texas lien waivers no longer have to be notarized for them to be effective.2 Further reading
What is the difference between a conditional release and unconditional release?An unconditional release is different from a conditional release because once you sign the document, you've immediately removed your right to file a mechanics lien or you're required to promptly remove an existing lien. An unconditional release means that there are no restrictions on the release of the lien.
What is a lien waiver form Texas?They specify that the party waives their right to file a mechanics lien. As a result, they protect the property owner from lien claims on their property. Typically, the GC or property owner will require their subcontractors and suppliers to sign a lien waiver in exchange for payment.
How do I release a lien on a property in Texas?To show that a lien has officially been removed on a property, you have to file a document called a “lien release” in the real property records of the county where the property is located. A release of lien simply means removing the lien claim from a specific property.
Do lien waivers need to be notarized in Texas?Only Three States Require Notarization
There are just 3 states where lien waivers must be notarized: Texas, Wyoming, and Mississippi.
How do I release a mechanic's lien in Texas?Deposit the Lien Amount with the Court: A lien can be removed from the property if you file a lawsuit and deposit the lien amount into the court's registry. This allows the parties to litigate the validity of the claim, without the lien encumbering the property.
|