Owner's field guide · Lien waivers

Lien waivers, explained.

You're building a home and everyone keeps mentioning "waivers." Nobody explains them. Here's the whole thing in plain English — and the one habit that keeps you from paying for your house twice.

The reason this matters

A lien is a legal claim against your house — not against your builder. If your builder doesn't pay a subcontractor or a supplier, that unpaid company can put a lien on your home even though you already paid the builder in full. You could be forced to pay twice, or worse. A lien waiver is the signed receipt that makes that risk go away.

Start here

Two words, and you've got it

A lien waiver is just a signed note from someone who worked on your home saying "I've been paid — I give up my right to make a claim against this house." Every waiver answers two simple questions.

Question 1 · When does it count?

Conditional vs. Unconditional

Conditional = it only counts once your payment actually clears the bank. It's a promise, safe to sign before the money moves. Unconditional = it counts immediately, no strings. This is the real release — so it should only ever be signed after the payment has cleared.

Question 2 · How much does it cover?

Progress vs. Final

Progress = it covers one payment / one stage of the work (a partial release, through a certain date). Final = it covers the entire job, for good — the "we're done, paid in full" release you collect at the very end.

The map

Four waivers, one grid

Cross those two questions and you get the four waivers every builder and lawyer works from. That's all there is. Colors match how safe each one leaves you.

Progress

covers this stage

Final

covers the whole job

Conditional

Unconditional

Conditional · Progress

A promise for this stage: "once your check clears, I give up my claim for it."

Collect before you pay

Conditional · Final

A promise for the whole job: "once the last check clears, I give up every claim."

With the final bill

Unconditional · Progress

The real release for this stage: "I've been paid for it, my claim is gone."

After that check clears

Unconditional · Final

The finish line: "paid in full, including retainage — every claim on this home is gone."

Closes it for good

One at a time

What each one actually says

01 Conditional · Progress

The pay-request promise

"The moment your payment for this stage clears, I give up my right to lien your home for it."

When: You collect this from your builder (and key subs) with each pay request — before you write the check. They're happy to sign it because it only kicks in if they actually get paid.
Protects you: You're never in the gap where you've handed over money but hold no release. The signed waiver is waiting the instant your payment lands.
Watch for: It is not real protection yet — it does nothing until the check clears. That's what the next one is for.

02 Unconditional · Progress

The real receipt for this stage

"I've been paid for this stage. I give up my right to lien your home for it — no conditions."

When: You collect this after that stage's check has cleared the bank — never before.
Protects you: This is the one that truly closes the door on that payment. Once you hold it, that money can never come back as a lien on your home.
Watch for: Don't release the next draw until the previous draw's unconditional waivers are in your hand.

03 Conditional · Final

The closing promise

"When the final payment clears, I give up all of my remaining rights to lien this home."

When: You collect this with the final payment request, including the held-back retainage.
Protects you: Sets up a clean finish — a full release that switches on the moment your last check clears.
Watch for: Still a promise, not the finish line. You want the unconditional version below once the money's truly gone through.

04 Unconditional · Final

The finish line

"I've been paid in full, including retainage. I give up every right to lien this home, for good."

When: You collect one after final payment + retainage has cleared — from your builder and every subcontractor and supplier who could still make a claim.
Protects you: This is what actually ends your lien exposure. When you hold unconditional finals from everyone, no one can lien your home over this build. Done.
Watch for: Never let anyone talk you into treating a conditional waiver as the finish. Only the unconditional final closes it.

The one rule to remember

Conditional before you pay. Unconditional after the money clears.

Before the check

Collect the conditional waiver with the bill. It's a safe promise — it only counts once they're actually paid, so nobody's out anything.

After it clears

Collect the unconditional waiver. Now the money's confirmed and the release is real. Never sign off "unconditional" while a check is still in the air.

The rhythm of a build

The safe order, draw by draw

Do this each time money moves and your lien exposure stays at zero the whole way through.

1

A draw request comes in

Before you pay, collect a conditional progress waiver from the builder — and from any sub or supplier who's sent you a notice (see below).

Conditional · Progress

2

You pay — and the check clears

Once the money has actually cleared the bank, collect the unconditional progress waiver for that same draw. Now that payment is truly closed.

Unconditional · Progress

3

Before the next draw

Don't release new money while the last draw's unconditional waivers are still missing. A missing waiver is unresolved exposure — hold the next check until it's in hand.

4

The project ends

With the final payment, collect conditional final waivers. Pay the last bill and release the retainage.

Conditional · Final

5

Close it for good

After the final money clears, collect an unconditional final from the builder and every sub and supplier. When you hold them all, your home is free and clear.

Unconditional · Final

The words around waivers

Three more terms you'll hear

Notice to OwnerNTO / preliminary notice

A heads-up letter from a subcontractor or supplier saying "I'm working on your home and could make a claim later." It sounds scary, but it's useful — it tells you exactly who to collect waivers from. When one arrives, put that company on your list.

Retainageretention

A slice — usually 5–10% — you hold back from every payment until the very end. It's your leverage to make sure the job is finished and the punch list is done before the builder gets the last of the money.

Draws vs. progressfront-loading

Watch that the money going out isn't running ahead of the work getting done. If you've paid for 60% but the house is only 40% built, that gap is how owners get burned if a builder walks. Pay for work you can see.

Why "paid twice" is realthe whole point

You pay the builder. The builder is supposed to pay their subs. If they don't, the sub's claim lands on your house, not the builder's. Waivers are the paper trail proving everyone below the builder was actually made whole.

How OwnersDeed handles this

You don't have to hold all of this in your head

OwnersDeed keeps a waiver on record for every vendor and every draw, and colors each one by exactly how protected you are — so the whole "conditional now, unconditional later" rhythm becomes three plain statuses you can read at a glance:

At risk — a claim is possible, no waiver yet Pending — signed, but still conditional Released — unconditional, truly clear