Arkansas provides no statutory direction for waiving rights of lien; however, it is customary for a claimant (contractor) to record a waiver of lien or partial waiver of lien as evidence of receipt of payment.

Lien waivers act as a sort of receipt, stating that a payment or arrangement for payment has been made by the owner for the potential lien claimant's furnishing of labor, materials, services, or equipment on an underlying contract. Waivers do not release the claimant's future rights to lien for labor, materials, services, or equipment furnished after the date the waiver is signed by the claimant.

A typical waiver of lien rights states contains a description of the subject property and the property's address. It identifies the claimant as the executing party and names the title owner of the property with whom the claimant has contracted. Most importantly, it contains a date up to which the claimant is waiving his right to lien (the execution date).

The waiver is signed by the contractor or individual acting on behalf of the contractor. The waiver does not have to be notarized for it to be valid. Waivers are recorded in the circuit court clerk's office in the county where the property is situated. Before recording, ensure the document complies with the standardized document form act, codified at Ark. Code Sec. 14-15-402.

Consult a lawyer with questions about waivers of right to lien, or for any other issues related to mechanic's liens in Arkansas.

Back to Arkansas