What is a lien waiver?

A lien waiver is a specific legal document that serves to relinquish or give up the right to claim a lien against a property for unpaid services or debts. This document is commonly used in construction and property transactions. For instance, when a contractor completes work on a property and receives payment, they may provide a lien waiver to the property owner, ensuring that they will not place a lien on the property for that work. This is both a protective measure for property owners, ensuring they do not face future claims for unpaid services, and a form of reassurance that the contractor has been compensated.

The other options do not accurately describe what a lien waiver is. Legal title to a property refers to ownership, which is unrelated to lien waivers. A document that increases lien priority does not exist within the context of lien waivers since they are aimed at waiving rather than prioritizing claims. Lastly, a contract to pay for property improvements might relate to financial agreements but does not encompass the relinquishing nature of a lien waiver.