Lien waivers are used to facilitate payment between contractors, subcontractors, customers, and property owners. A waiver is a known relinquishment of a right. In this case, the person granting the waiver is relinquishing the right to seek a mechanic's lien for all or part of the amount due.

In general, there are two types of waivers: partial and final. A partial waiver is used when a progress or partial payment is made and money is still due and owing. The waiver applies only to the partial payment amount and is conditioned upon the actual receipt of that money. A final waiver releases all rights immediately. Be cautious about using the correct form of waiver, as partial waivers provide more protection to the lien claimant, while final waivers offer more protection for the customer or property owner.

The waiver must include details identifying the parties, the location of the project, relevant details from the original agreement such as work requested, costs and changes, important dates, payments, and any exclusions or agreements. The person waiving the lien gives a sworn statement in front of a notary, signs the form, and then records it in the property records for the county where the property is located.

Best practices dictate that claimants should only use the final waiver after the customer makes the final payment, meaning nothing is left due and owing after this payment. When issuing a final waiver, verify that the funds actually go through (meaning the check has cleared).

This article is provided for information purposes only and should not be relied upon as a substitute for the advice from a legal professional. Please speak with an attorney with questions about using a lien waiver or any other issues related to liens in Missouri.

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