Conditional Lien Waiver
Conditional Lien Waiver
I. Agreement Overview
This Conditional Lien Waiver ("Agreement") is made and entered into by and between [YOUR COMPANY NAME] ("Releasor") and [CLIENT OR CONTRACTOR'S NAME] ("Releasee"), collectively known as the "Parties." This Agreement aims to acknowledge the receipt of a specified payment and conditionally waive the Releasor’s lien rights against the property detailed below. This waiver becomes effective upon the successful clearance of the stated payment and is executed on [DATE].
II. Property Description
The property involved in this transaction is detailed as follows:
Address: [FULL ADDRESS OF PROPERTY]
Legal Description: [LEGAL DESCRIPTION OF PROPERTY]
This property will herein be referred to as the "Property."
III. Declaration of Payment
Amount Received: The Releasor acknowledges the receipt of [AMOUNT RECEIVED] from the Releasee.
Method of Payment: The payment was made via [PAYMENT METHOD].
Payment Date: The funds were transferred on [PAYMENT DATE].
Condition of Waiver: The effectiveness of this waiver is strictly conditional upon the clearing of the aforementioned payment. In the event of a payment failure, this waiver becomes null and void, and the Releasor retains the right to assert a lien.
IV. Scope of Waiver
This waiver applies solely to the lien rights associated with the specified payment and does not affect any other claims or rights, which may include:
Future payments for ongoing or unfinished work.
Payments for unapproved change orders or additional work not covered in the original contract.
V. Warranty of Work Completion
The Releasor warrants that the work performed up to the date of this waiver was completed in accordance with the contractual agreements and to a professional standard.
VI. Release of Claims
Upon the clearing of the specified payment, the Releasor agrees to release and forever discharge the Releasee from any claims, demands, or rights to a lien with respect to the Property, to the extent of the payment received.
VII. Affirmation of Voluntary Participation
The Releasor confirms that this waiver is signed voluntarily, without any coercion, and after having the opportunity to seek legal advice. This affirmation ensures that the Releasor fully understands the terms of this Agreement.
VIII. Legal Binding
This Agreement shall be governed by the laws of [STATE NAME], and any disputes shall be resolved in the courts of [COUNTY NAME, STATE NAME].
IX. Signatures
This section must be completed by both parties to affirm their agreement:
[YOUR NAME]
[YOUR TITLE]
Date: [DATE]
[CLIENT OR CONTRACTOR'S NAME]
[TITLE]
Date: [DATE]
