Under 770 ILCS 60, Illinois' Mechanic's Lien Act, lien waivers are a type of document used between a contractor (including a sub or general) and a property owner to induce or encourage final or partial payments in exchange for forfeiting the claimant's right to a mechanic's lien.

A lien waiver is useful for property owners because it assures them that a lien will not be placed on their property, and for contractors because presenting the waiver can encourage the owner to pay. Therefore, a waiver offers a quid pro quo arrangement with benefits for both sides. Waivers can be conditional, meaning they go into effect based upon actual receipt of payment as a triggering event, or unconditional, meaning the waiver takes effect upon being sent to the owner or prime contractor.

The Waiver of Lien to Date is for a subcontractor and contractor to sign upon receipt of a partial payment from the customer. The parties should ensure the payment has been made (meaning any check has been deposited and cleared) before signing the waiver. The Waiver of Lien to Date includes an affidavit to be completed by the contractor listing all parties contracted with, the contract amounts, payment amounts, and balance remaining due. Finally, sign the completed lien waiver in front of a notary public.

Contact an attorney for more information about lien waivers, or any other issues related to mechanic's liens in Illinois.

Back to Illinois